Consumer complaint received 2026-06-12 00:00:00
Product: Debt collection — I do not know
Issue: Attempts to collect debt not owed — Debt was paid
Company: TRANSWORLD SYSTEMS INC
State: AZ

Complaint narrative:
CFPB FORMAL COMPLAINT TRANSWORLD SYSTEMS XXXX ( Account XXXX ) Consumer : XXXX XXXX XXXX Collector : Transworld Systems Inc. Account Number : XXXX Credit Bureau : XXXX ( reported XX/XX/XXXX and XX/XX/XXXX ) 1. Summary of Complaint Transworld Systems Inc. is continuing to furnish a negative collection tradeline for account XXXX even though the account was fully paid. The account is marked Paid, was a collection account, yet it still appears as a derogatory item and is being updated with missing, incomplete, and contradictory information. The furnisher has not corrected the reporting, has not validated the debt, and has verified disputed information without conducting a reasonable investigation. These actions violate the Fair Credit Reporting Act ( FCRA ) and the Fair Debt Collection Practices Act ( FDCPA ) and have caused measurable financial harm. 2. FCRA Violations A. FCRA 1681s2 ( a ) ( 1 ) ( A ) Duty to Report Accurate Information The furnisher is reporting : - A paid account as a continuing negative item - No date of last payment - No payment history - No highest balance - No monthly payment - No payment streak - A XXXX term on a XXXX account - Conflicting statuses ( Paid, was a collection account vs. ongoing derogatory reporting ) These omissions and contradictions constitute inaccurate and incomplete reporting. B. FCRA 1681s2 ( a ) ( 2 ) Duty to Correct and Update The furnisher has reported this account multiple times ( XXXX and XXXX ) without correcting missing fields or removing the derogatory status after payment. C. FCRA 1681s2 ( a ) ( 3 ) Failure to Mark Account as Disputed The furnisher failed to report the account as disputed by consumer after my dispute. D. FCRA 1681s2 ( b ) Failure to Conduct Reasonable Investigation The furnisher verified the account without providing : - Contract or agreement - Itemized accounting - Proof of ownership or assignment - Payment history - Date of first delinquency This constitutes failure to investigate. E. FCRA 1681e ( b ) Failure to Maintain Reasonable Procedures for Accuracy XXXX is reporting a paid account as derogatory with no payment history, no balance history, and contradictory status information, demonstrating unreliable reporting. F. FCRA 1681c ( a ) ( 4 ) - ( 5 ) Obsolete Information / Missing DOFD The furnisher has not provided the Date of First Delinquency ( DOFD ), preventing determination of the XXXX reporting period. 3. FDCPA Violations A. FDCPA 809 ( a ) Failure to Provide Validation Transworld Systems Inc. has not provided validation, including original creditor information, itemization, contract, or proof of assignment. B. FDCPA 807 False or Misleading Representations Reporting a paid and closed account as a continuing negative item is materially misleading. Reporting delinquency without supporting dates or history is misleading. C. FDCPA 807 ( 8 ) Failure to Mark as Disputed The collector failed to communicate the dispute to XXXX. D. FDCPA 813 Continued Collection Activity Without Validation Updating or continuing to furnish the tradeline after a dispute constitutes continued collection activity. 4. Harm to Consumer The inaccurate reporting has caused : - Lower credit score - Denial of credit opportunities - Higher interest rates - Reputational harm - Emotional distress - Financial losses due to increased borrowing costs

Company response to consumer: Closed with explanation