Consumer complaint received 2019-05-08
Company: TRANSWORLD SYSTEMS INC
State: OH
Product: Debt collection
Sub-product: Private student loan debt
Issue: Written notification about debt
Sub-issue: Didn't receive enough information to verify debt

Complaint:
Starting back in XX/XX/XXXX, I got in contact with a company called XXXX XXXX XXXX ( XXXX ) XXXX, which is a debt consolidation company. They were going to consolidate my debt which was only through XXXX XXXX originally. The agreement would be that I would make one payment to XXXX and they would disperse to each of the five loans for a fee of {$50.00}. 
That is when the harassment began. I was sent a harassment letter stating that they were going to sue me and garnish my wages. They were contacting my employer between XX/XX/XXXX and XX/XX/XXXX. According to the Fair debt collection practices act, they can not threaten to sue or call your employer after you inform them to not contact employer. ( 806 Harassment or Abuse of the Fair and Accurate Transaction Act ) Part of 2 on XX/XX/XXXX,. They sent a sheriff to my residence to send me a return of service of summons. They said on the paper it was XXXX XXXX  but it was in the late evening because we were at work during the morning hours. XXXX  abused the legal system when I was paying a larger amount that took full advantage of the situation. Which has caused me to have XXXX, XXXX XXXX which it was unnessary when I making payments and they never should have take this far. I had requested documents when girlfriend called that day which was XXXX. ( XXXX XXXX phone detail on account XXXX ) My loan ( promissory Note ) I originally signed was with XXXX XXXX for all five of my student loans. In XX/XX/XXXX, XXXX XXXX XXXX Merged with XXXX based XXXX XXXX XXXX. These two large banking companies completed the acquisition of XXXX XXXX in quarter three of XX/XX/XXXX. This is when my student loans were sold to XXXX XXXX XXXX XXXX XXXX, which is a debt collector out of Delaware as a trust, not a lender. They bought or sold to multiple private student loans for the purpose of hedging. ( XXXX ( XXXX ) XXXX. 
Statute of limitations is another thing that was brought to my attention. I had multiple loans that were taken out between XX/XX/XXXX and XX/XX/XXXX and payments were never made, because I never signed an agreement with XXXX. According to the laws in Ohio, no debt collector can take legal action after six years ( XXXX XXXX XXXX XXXX ; XXXX XXXX XXXX XXXX ) Chapter XXXX : INTEREST XXXX Maximum rate of interest. 
( A ) The parties to a bond, bill, promissory note, or other instrument of writing for the forbearance or payment of money at any future time, may stipulate therein for the payment of interest upon the amount thereof at any rate not exceeding eight per cent per annum payable annually, except as authorized in division ( B ) of this section. 
http : //codes.ohio.gov/XXXX Ohio Usury Laws Ohio has established a usury cap on personal loans in that state at 21 %. This usury cap applies to personal loans that are made in Ohio and involve an individual that is borrowing the money in question. 
In Ohio, if a personal loan agreement that contains an interest rate above the 21 % level is brought before a court in that state, the agreement will be declared illegal. The net effect of such a judicial declaration is that the loan agreement will be voided. Once voided by the court, it no longer is enforceable. In other words, the borrower will no longer be obliged to make payments pursuant to the loan agreement. The borrower is off the proverbial hook. 
XXXX XXXX XXXX ( Assignment ) When XXXX XXXX XXXX buys the loans, they then transfer them to subsidiaries such as XXXX XXXX XXXX XXXX XXXX XXXX or XXXX XXXX. ( There are several trusts ) For each year from XX/XX/XXXX-XX/XX/XXXX, the transfer from the original lender to XXXX XXXX XXXX is done through what is called an assignment, which they would not produce for me, but would prove that they are the current owners of the loan. 
Not accurately reporting my payments to each of the three credit  bureaus ( XXXX, XXXX, XXXX ) when I filed a dispute about XXXX XXXX XXXX XXXX XXXX, they had 30 days to prove that I didnt make payments. In about 45 days, I received letters that all three bureaus removed them from my report failing to disprove my dispute. ( copies of each report attached ) violating the Fair and  Accurate Credit Transaction Act. 
Breech of Contract. FromXX/XX/XXXX, through XX/XX/XXXX, I had  made payments promptly and never late. ( Statements from XXXX verifying attached ). XXXX, XXXX XXXX  XXXX, the law firm representing XXXX, started requesting that my wages be garnished. So that is when I got a local lawyer involved, XXXX XXXX, to negotiate the terms and stop garnishments. The agreement was that I pay {$120.00} per loan for five loans. This was agreed to by XXXX XXXX XXXX, XXXX XXXX XXXX  XXXX attorney on XX/XX/XXXX. On XX/XX/XXXX, they filed again for garnishment when I was making payments on time. I then decided to fight back and went to court on XX/XX/XXXX, and explained that I havent missed any payments and that I was doing everything in my power and proved payment history. Judge XXXX said that we had to negotiate terms within 10 days and get back to the courts. On the last day, XXXX XXXX, attorney with XXXX, XXXX XXXX XXXX called to negotiate terms. He admitted that the reason for garnishment was because the payments were not being applied accurately on their part, which went against the agreement. During the negotiation for payments on the phone, I said that I would pay you XXXX, and what is your counter. He refused to negotiate which put him in contempt of court. The judge called him with no response. This was confirmed by XXXX XXXX, collection supervisor XX/XX/XXXX @ XXXX. 
This is the breakdown of the servicers/owners and the inaccurate charges on the accounts : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX ( owner ) XXXX XXXX XXXX ( XXXX ) XXXX  XXXX now renamed Transword System Incorp XX/XX/XXXX ( servicers ) XXXX XX/XX/XXXX XXXX  XX/XX/XXXX {$26000.00} XXXX XX/XX/XXXX XXXX XX/XX/XXXX {$26000.00} {$2700.00} XXXX XX/XX/XXXX XXXX XX/XX/XXXX {$4000.00} {$370.00} XXXX XX/XX/XXXX XXXX XX/XX/XXXX {$15000.00} {$1300.00} XXXX XX/XX/XXXX XXXX XX/XX/XXXX {$8000.00} {$8000.00} XXXX XX/XX/XXXX XXXX XX/XX/XXXX {$18000.00} {$2100.00} LOAN # INTEREST RATE % $ AMOUNT XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX PAID OFF XX/XX/XXXX XXXX Defamation of character which was public by filing garnishment with the course when I was making payments every month, by publishing records in the XXXX XXXX under the Court News. When I talked to XXXX, a representative at the XXXX County Clerk of Courts, she said that they wouldnt publish it because its not a criminal offense. XXXX, XXXX XXXX  XXXX has accounts with the XXXX XXXX and publish records to scare people. Verified that accounts with XXXX XXXX with XXXX XXXX and XXXX in Advertising-XXXX ( XXXX XXXX   ) References & Contacts Consumer Response Center XXXX XXXX Federal Trade Commission, XXXX XXXX XXXX XXXX, Washington DC XXXX XXXX XXXX XXXX ( XXXX ) and XXXX Michigan XXXX : XXXX XXXX ; phone XXXX ; XXXX XXXX  XXXX XXXX, XXXX XXXX, XXXX, OH XXXX XXXX XXXX ( XXXX County Judge Secretary ) XXXX http : //www.ohioattorneygeneral.gov/XXXX XXXX  " http : //www.ohioattorneygeneral.gov/XXXX '' debt-collectionFAQs 1345.02 unfair or deceptive Acts or practices http : //www.ohioattorneygeneral.gov/XXXX XXXX " http :  //www.ohioattorneygeneral.gov/XXXX '' ag/contacts Bill HR   XXXX XXXX XXXX, XXXX XXXX ( Borrowing statute ) Private student loan bankruptcy fairness act ( HR532 )  www.consumerfinance.gov/complaint XXXX ; Consumer Financial Protection Bureau Ohio Attorney General XXXX XXXX XXXX ; XXXX XXXX XXXX XXXX , XXXX XXXX , XXXX, OH XXXX Ohio State Bar Association XXXX XXXX XXXX XXXX XXXX Rep XXXX XXXX District XXXX ; phone XXXX ; fax XXXX XXXX XXXX XXXX District XXXX ; Phone XXXX ; fax XXXX /XXXX XXXX option 2 Bankruptcy Abuse Prevention and Consumer Protection Act or 2005 ( undue hardship test for student loans ) the XXXX Test, the totality of the circumstances XXXX Transworld System Incorp XXXX Test Supervisor XXXX/XXXX XXXX XXXX Court Case # XXXX ; Judge XXXX XXXX XXXX ; Attorney XXXX XXXX XXXX XXXX XXXX Garnishment XXXX XXXX

Company response to consumer: Closed with explanation