Consumer complaint received 2018-01-12
Company: TRANSWORLD SYSTEMS INC
State: IN
Product: Debt collection
Sub-product: Private student loan debt
Issue: Attempts to collect debt not owed
Sub-issue: Debt was already discharged in bankruptcy and is no longer owed

Complaint:
I can provide any documentation/specific information needed for these cases, please just let me know what you need. I have 7 binders full of paperwork ... too much information to include here. 

The facts : 7 separate cases filed against me, under the following variations of XXXX XXXX XXXX XXXX XXXX : - XXXX XXXX XXXX XXXX XXXX XXXX - XXXX XXXX XXXX XXXX XXXX XXXX - XXXX XXXX XXXX XXXX XXXX XXXX - XXXX XXXX XXXX XXXX XXXX XXXX - XXXX XXXX XXXX XXXX XXXX XXXX - XXXX XXXX XXXX XXXX XXXX XXXX - XXXX XXXX XXXX XXXX XXXX XXXX *Current alleged total of all loans is over {$190000.00} and continues to accrue interest. This is more than double the original amount. 

Our situation : In XX/XX/XXXX-XX/XX/XXXX, I took out loans to help pay for living expenses during college. In XX/XX/XXXX,  after our family business went under, we had to declare bankruptcy. Our no asset Chapter XXXX was discharged in XX/XX/XXXX, but that did not help with the loans as they were classified as private student loans. We have continued a slow but steady income increase since that time ( currently up to $ XXXX/year as a family of XXXX ), but due to life circumstances ( cars breaking down, household repairs, medical issues ) we just barely squeak by with month to month finances. We have already cut back on all extras. If we are faced with a garnishment or bank levy ( which is seemingly more likelyas we have multiple judgements against us from these loans ), it would destroy our ability to squeak by. 

Our issue : As I said, inXX/XX/XXXX-XX/XX/XXXX I took out loans to help pay for living expenses during college. These loans were advertised as alternative education loans, which could be used to pay for living expenses, past tuition, and study abroad programs. They were not certified through the school, but instead required me to simply send in a copy of my schedule for that semester. They mailed a check directly to me, in my name. It never went through the school or financial aid office. Im stating all of this because from the research Ive done, these loans do not qualify as true education loans per the bankruptcy code. Therefore, beyond the issues with credibility of their documents in the cases against me, I believe these loans should have been discharged in our XX/XX/XXXX bankruptcy and this whole mess never should have wasted the courts and our time. I can point to exact portions of the bankruptcy code to support this claim, if neededplease just ask. 
In XX/XX/XXXX, XXXX XXXX XXXX ( from here on XXXX ) filed suit against me, combining 2 loans  into one lawsuit under the plaintiff XXXX XXXX XXXX XXXX XXXX XXXX-I. I answered, and filed pro-se as I could not afford a lawyer and every lawyer I talked to at the time wasnt interested in pursuing the case. After 2 years of back and forth with XXXX within the courts, I lost after representing myself at the bench trial. Their proof of chain of assignment was a self-produced document which they claimed ( through a shady affidavit from XXXX XXXX XXXX ) was a redacted Schedule 2. Dates on this document make it impossible for it to be what they claim ( A create date of XX/XX/XXXX, when the pool supplement XXXX claims it is a part of is dated XX/XX/XXXX, for example ). I questioned the document at trial, and even asked the affiant under oath if she had ever worked for the original creditor on the promissory note provided in the complaint ( XXXX XXXX ) and she admitted that she had not. Still, I lost. I attempted to appeal, but the judge did not approve in forma pauperis status, and I could not afford the filing fees to continueso it was dismissed. I am not employed, ( I have XXXX children and childcare would negate any salary I would make ) so they can not garnish my wagesbut my husband is employed and I live in fear that they will levy our bank account. 

This is just one case. There are 6 more ( all of which are against both myself and my husband, as he was a cosigner ). 4 of them we have fought pro-se in the courts through to bench trial, with the same result. 1 of them ended in a summary judgement in favor of the Plaintiff because we were never served with any paperwork until we received the order granting summary judgement in XX/XX/XXXX. 1 case is still active, with the last activity being our response to Plaintiffs discovery and our own request for discovery ( which was never answeredand never has been in any of these cases ) in XX/XX/XXXX. All of them have failed to produce an actual copy of the schedule 2 listing my loan as one of the pool involved. There are various forms of computer generated documents that they claim are  this schedule 2, but none of them state that they are the schedule 2, nor are they verified or certified by someone other than an affiant from XXXX XXXX XXXXXXXX, and they all have glaring issues regarding credibility. 

I am hoping there is something the CFPB can do to help us. Or guide us. We dont have thousands of dollars to spend on a lawyer, but it is obvious that the courts do not take pro-se defendants seriously. My mental health can not continue to fight this when the outcome is always going to be in favor of the big company that can spend money on lawyers. Please help.

Company response to consumer: Closed with explanation