Consumer complaint received 2025-04-25 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Problem with a company's investigation into an existing problem — Their investigation did not fix an error on your report
Company: TRANSWORLD SYSTEMS INC
State: AZ

Complaint narrative:
I am disputing inaccurate reporting by Transworld Systems regarding an XXXX XXXX XXXX ( XXXX ) account. 

On XX/XX/scrub> 2025, at XXXX XXXX, I spoke with XXXX, a manager at XXXX, who confirmed that my account was assigned ( not sold ) to Transworld Systems. He also stated that XXXX retains ownership of the account and that Transworld Systems was only assigned for collection purposes. 

Additionally, a representative from XXXX informed me that if I made a small payment of {$85.00}, XXXX would then set up a payment arrangement with me, and they would instruct Transworld Systems to stop reporting the account to the credit bureaus. 

Despite this, Transworld Systems continues to report the account to XXXX  as a delinquent collection, without noting that the original creditor retains ownership and is offering a resolution directly with me. 

I disputed the account with XXXX but Transworld Systems verified the account as accurate, and no changes were made. Transworld Systems has also never provided any written communication regarding this debt, only verbal communication. 

According to APSs publicly available Service Schedule 1, Section 6.5, XXXX refers debts to collection agencies for collection purposes, meaning XXXX retains ownership of the debt. Therefore, Transworld Systems is acting only on behalf of XXXX, not as the new owner of the debt. 

Their continued reporting is misleading and damaging my credit, despite me actively communicating with XXXX to resolve the account. This reporting appears to violate the Fair Credit Reporting Acts requirement for maximum possible accuracy.

Transworld Systems continued reporting of the collection account may violate the following consumer protection laws : Fair Credit Reporting Act ( FCRA ), 15 U.S.C. 1681s-2 ( b ) : Furnishers of information ( like Transworld Systems ) are required to provide complete and accurate information to credit reporting agencies and must promptly update or correct information when they learn it is incomplete or inaccurate. 
Since the original creditor ( XXXX ) retains ownership of the debt and is offering a payment arrangement directly with me, Transworlds continued reporting of the debt as an active delinquent collection is misleading and not fully accurate. 
Transworld Systems also failed to properly investigate my dispute with XXXX verifying the debt as accurate without considering the updated status of the account. 
Fair Debt Collection Practices Act ( FDCPA ), 15 U.S.C. 1692e and 1692f : Debt collectors are prohibited from using any false, deceptive, or misleading representations in connection with the collection of a debt.

By continuing to report the debt as an active collection despite the original creditors offer to resolve it directly, Transworld Systems is misrepresenting the status of the debt, which may mislead other creditors, lenders, or third parties reviewing my credit report.

Additionally, the failure to provide written validation of the debt, and relying only on verbal communications, raises concerns under FDCPA 1692g, which requires debt collectors to provide consumers with a written notice of the debt and their rights to dispute it within five days of initial communication.

Given these issues, I respectfully request that the CFPB investigate these potential violations and ensure the inaccurate information is corrected or removed from my credit reports.

Company response to consumer: Closed with explanation