Consumer complaint received 2024-08-01
Product: Debt collection — Credit card debt
Issue: Attempts to collect debt not owed — Debt is not yours
Company: TRANSWORLD SYSTEMS INC (GA)

Violation of the Fair Debt Collection Practices Act ( FDCPA ) Unauthorized Communication : According to the FDCPA, debt collectors are restricted in how they can communicate with third parties regarding a consumers debt. Under 15 U.S. Code 1692c ( b ), " a debt collector may not communicate, in connection with the collection of any debt, with any person other than the consumer, his attorney, a consumer reporting agency ... the creditor, the attorney XXXX XXXX XXXX or the attorney XXXX XXXX XXXX XXXX. '' Violation by XXXX : Transworld Systems XXXX obtained your information from XXXX XXXX Credit Card services without your knowledge or consent, they might have violated this provision. The transfer of information should be transparent to the consumer and within the bounds of the law. XXXX is listed on my consumer report as XXXX XXXX account number XXXX. 

Violation of the Gramm-Leach-Bliley Act ( GLBA ) Privacy Rule ( Regulation P ) : The GLBA mandates financial institutions to protect the privacy of consumer financial information. Specifically, it requires them to provide privacy notices to consumers and give them the option to opt-out of information sharing with non-affiliated third parties. 

Violation by XXXX XXXX XXXX XXXX XXXX : Under 15 U.S. Code 6802 ( b ), " a financial institution may not disclose nonpublic personal information to a nonaffiliated third party unless such financial institution clearly and conspicuously discloses to the consumer ... that such information may be disclosed to such third party. '' Furthermore, consumers must be provided an opportunity to opt-out of such disclosures. 

Failure to Provide Opt-Out Opportunity : If XXXX XXXXr XXXX XXXX services did not provide you with clear and conspicuous notice about sharing your information with Transworld Systems XXXX  or did not offer you an opportunity to opt-out, they violated the GLBA. 

Potential Deceptive Practices under the Federal Trade Commission Act ( FTC Act ) Unfair or Deceptive Acts or Practices ( UDAP ) : Under Section 5 of the FTC Act ( 15 U.S. Code 45 ), " unfair or deceptive acts or practices in or affecting commerce '' are prohibited.

Possible Deception by Both Parties : If either XXXX or XXXX XXXX XXXX  XXXX  services misrepresented or failed to adequately disclose their practices regarding the sale and use of your information, they may have engaged in deceptive practices. This could involve misleading you about how your data would be used or failing to inform you that your information would be sold. 

Conclusion : Based on the FDCPA, GLBA, and the FTC Act, it appears that both Transworld Systems XXXX and XXXX XXXX XXXX XXXX  services may have engaged in actions that violate your rights as a consumer. XXXX  acquisition of your information without your explicit consent and XXXX XXXX XXXX  XXXX  services failure to provide proper notice and opt-out opportunities constitute significant breaches of federal laws designed to protect consumer privacy and fair debt collection practices.