Debt buyer Security Credit Services and debt collection legal firm Jacob Law Group have agreed to settle Federal Trade Commission (FTC) charges that they misled consumers into paying unnecessary fees and falsely threatened consumers with litigation. The FTC alleged that the Mississippi-based defendants violated the FTC Act and the Fair Debt Collection Practices Act by deceptively charging consumers a fee for payments authorized by telephone. The agency says the defendants allegedly led consumers to believe, incorrectly, that the fee was unavoidable; in actuality, those who paid via mail or online did not incur the charge. Under the settlement terms, the defendants will pay $799,958 in restitution for consumers and will be barred from making any misrepresentations when collecting a debt. The defendants reportedly have collected at least $799,958 in customer fees since 2008.