Consumer complaint received 2025-08-20 00:00:00
Product: Debt collection — Credit card debt
Issue: Attempts to collect debt not owed — Debt was paid
Company: TRANSWORLD SYSTEMS INC
State: GA

Complaint narrative:
b'Subject: Urgent Complaint and Request for Action Against Transworld Systems Incorporated (TSI) and XXXX  for Repeated Violations of FDCPA, GLBA, and FTC Act  Account No. XXXX / Original XXXX  Account No. XXXX Ending\nDear Sir or Madam,\nI am writing to file a comprehensive complaint, supplementing my previous submission of XXXX XXXX XXXX, against Transworld Systems Incorporated (TSI), a third-party debt collector for XXXX  (XXXX XXXX XXXX), and against XXXX itself. This complaint outlines a pattern of serious and repeated violations of the Fair Debt Collection Practices Act (FDCPA), the Gramm-Leach-Bliley Act (GLBA), and the Federal Trade Commission Act (FTC Act), resulting in substantial financial damages to me through unlawful tax refund garnishments.\nBackground and Timeline of Events:\nMy original XXXX XXXX account (ending in XXXX) was closed on XXXX XXXX XXXX. On or about XXXX XXXX XXXX XXXX  issued a "Notice of Intent to Offset Delinquent Debt" for a different account number, XXXX, stating their intent to refer it to the Treasury Offset Program (TOP) by XXXX XXXX if not paid. TSI, as XXXXXXXX  collection agency, then mailed an initial collection letter on XXXX XXXX XXXX.\nDespite a clear dispute process not being formally initiated by me at that time, my federal tax refunds were subsequently garnished through the Treasury Offset Program (TOP) on three separate occasions by XXXX/TSI:\n1.\XXXX XXXX 2023: $XXXX  was garnished from my XXXX  federal tax refund. \n2.XXXX XXXX XXXX: $XXXX was garnished from my XXXX  federal tax refund. \n3.XXXX XXXX XXXX: $XXXX was garnished from my XXXX  federal tax refund. \nThe total amount garnished to date is $XXXX.\nMy attempts to resolve this and obtain proper debt validation are as follows:XXXX XXXX XXXX: I filed a complaint with the CFPB (Reference ID: [Previous Complaint ID, if you have it]) alleging FDCPA violations (unauthorized communication regarding my data), GLBA violations (improper data transfer without notice or opt-out), and FTC Act violations (deceptive practices related to data handling).XXXX XXXX XXXX: I sent an email to XXXX  Collections requesting debt verification under FDCPA and FCRA for the account they reported .XXXX XXXX XXXX: TSI responded to my CFPB complaint via the CFPB Portal, claiming they had received validation information and enclosing what they consider "validation" . As previously noted in my feedback to the CFPB, this "validation" was incomplete and failed to address the core issues of data transfer legality, original wet signature, or full proof of assignment.XXXX XXXX XXXX: XXXX  Collections responded to my XXXX XXXX XXXX, email, stating that my debt was "assigned to our outside collection agency, Transworld Systems, Inc. (TSI)" and directing me to contact TSI .XXXX XXXX XXXX: I sent a formal, certified Debt Validation Request (USPS Certified Mail, Tracking Number: XXXX XXXX XXXX XXXX XXXX XXXX) directly to Transworld Systems Incorporated, explicitly invoking my rights under 15 U.S.C.  1692g(b) of the FDCPA. This letter specifically requested proof of original wet signature, complete accounting, proof of TSI\'s legal authority/assignment, GLBA compliance verification, and proof of compliance with the statute of limitations . The letter also clearly stated that TSI "must cease all collection activity... until you provide full verification of the debt." XXXX XXXX XXXX: I followed up with a detailed email to XXXX  Collections, specifically questioning TSI\'s legal authority to use TOP as a non-federal entity, requesting the assignment/sale agreement, and demanding a copy of any TOP offset notification sent to me .\nViolations of Federal Law:\nDespite my diligent efforts to dispute and validate this debt, TSI, with XXXX  referral and apparent complicity, has engaged in severe and persistent violations:\n1.\tViolation of the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C.  1692g(b)  Failure to Cease Collection and Provide Proper Validation:\no\tTSI initiated and completed the XXXX XXXX XXXX, TOP garnishment after receiving my certified Debt Validation Request dated XXXX XXXX XXXX. The FDCPA explicitly requires a debt collector to cease all collection activities (including tax offsets) until they provide full verification of the debt. TSI failed to provide adequate validation in response to my XXXX XXXX XXXX, letter. The prior "validation" (XXXX XXXX XXXX) was incomplete and predates my formal, comprehensive validation request.\no\tThe "validation" provided by TSI is insufficient, as it lacks the original agreement with my wet signature, full proof of the debt\'s chain of title (assignment from XXXX  to TSI), and explicit verification of GLBA compliance, all of which were specifically requested.\n2.\tViolation of the FDCPA, 15 U.S.C.  1692e  False or Misleading Representations:\no\tAccount Number Discrepancy: TSI has pursued collection on account number XXXX (and variants like XXXX) , which differs from my primary XXXX  account (ending in XXXX). While XXXX  indicated the debt was "assigned" to TSI, neither XXXX  nor TSI has provided clear, validated documentation explaining this transition or linking the original debt to the new account number, which misrepresents the character or amount of the debt.\no\tMisrepresentation of Authority to Use TOP: If XXXX  fully assigned the debt to TSI, a private entity, it raises serious questions about TSI\'s direct legal authority to utilize the Treasury Offset Program, which is primarily reserved for federal agencies collecting federal debts (31 U.S.C.  3716). Neither TSI nor XXXX has provided the requested legal justification or documentation for TSI\'s use of TOP . This constitutes a misleading representation of their collection authority.\n3.\tViolation of the Gramm-Leach-Bliley Act (GLBA), 15 U.S.C.  6802(b)  Unauthorized Disclosure of Nonpublic Personal Information:\no\tMy personal financial information was transferred from XXXX XXXX Credit Card Services (XXXX) to Transworld Systems Incorporated without my knowledge or explicit consent, and without providing me with a clear and conspicuous privacy notice or an opportunity to opt-out of such disclosure to a non-affiliated third party. Both my CFPB complaint and my XXXX XXXX XXXX, debt validation letter specifically raised this concern. Neither XXXX  nor TSI has provided any evidence of compliance with GLBA.\n4.\tViolation of the Federal Trade Commission Act (FTC Act), 15 U.S.C.  45  Unfair or Deceptive Acts or Practices (UDAP):\no\tThe cumulative actions of TSI and XXXX, including repeated garnishments of my federal tax refunds despite persistent disputes, failure to provide comprehensive validation, lack of transparency regarding debt ownership and collection authority, and apparent disregard for consumer privacy rights (GLBA), constitute unfair and deceptive acts or practices in commerce. The use of an aggressive collection tool like TOP without robust validation or clear legal justification is inherently unfair.'

Company response to consumer: Closed with explanation