Consumer complaint received 2015-08-19 00:00:00
Product: Student loan — Non-federal student loan
Issue: Dealing with my lender or servicer — Received bad information about my loan
Company: TRANSWORLD SYSTEMS INC
State: GA

Complaint narrative:
I obtained private student loans while attending XXXX University ( XXXX ), formerly known as XXXX XXXX University ( XXXX ). My father cosigned for these loans. Approximately XXXX years ago, my parents filed for a chapter XXXX bankruptcy. The student loans were not a part of this bankruptcy. They were a direct pay form the primary loanee, which is me. My father was just a cosigner, and regardless of the chapter XXXX bankruptcy, would have fulfilled his obligation as cosigner if I were not to pay. The bankruptcy is now paid off. My student loans have been in good standing throughout the entire chapter XXXX bankruptcy. On XX/XX/XXXX, my mother receives a call from a rep from XXXX XXXX XXXX ( XXXX ) stating that they were trying to collect a debt from my father, the cosigner, because the student loans were defaulted. They stated that I owed a total of XXXX from XXXX private student loans. I was confused because I have always kept my accounts in good standing. They were only in an approved forbearance since XX/XX/XXXX ( which is still in good standing ). My mother gave me the number to call XXXX. When I spoke to the rep, she told me that my loans were in default, and that I needed to pay in full. She did not know why my loans were listed as delinquent. They gave an option for me to pay approximately {$33000.00} if I wanted to pay in full ; or I could pay off XXXX loan for approximately {$9000.00} and make approximately $ XXXX/month payments until the rest of the debt was resolved. I was not offered any more options. She also told me that I needed to act quickly because all three loans were accruing interest separately/daily. I then called the company that was servicing my loans, XXXX XXXX XXXX ( XXXX ). The rep there told me that they no longer service my student loans because the owner/guarantor decides what is done with the loans when a bankruptcy is filed. They stated that the owner/guarantor put the loans in default due to the Chapter XXXX bankruptcy from the cosigner ... even though the bankruptcy is paid off and that I made payments throughout the entire life of the bankruptcy. The owner/guarantor of my loans is Transworld System Inc ( TSI ). When I called TSI, the rep told me that my loans were put in default due to a breach of contract when the cosigner filed a bankruptcy. I explained to them that the student loans were not included in the bankruptcy, and that the bankruptcy had been paid off ; not to mention, I made payments throughout the life of the bankruptcy. They told me that it did not matter. They said that they received notification from the government that a chapter XXXX bankruptcy had been paid off by the cosigner which prompted them to put the loans in default due to a breach in contract. I asked if I could have a letter of verification stating this information and why my loans were defaulted, and the rep told me that they did not send out any letters like that and that it was due to a breach in contract. I do not have huge amounts of money laying around to pay out like they want. I do not want loans listed in default on my credit, this was not my bankruptcy. Is this right? Can you please help? Thank you for your time! 
XXXX - XXXX XXXX XXXX XXXXXXXX - XXXX XXXX XXXX XXXX XXXX for the repXXXX - XXXX XXXX XXXX XXXXI will attach bank statements of payments. The payments vary in amount due to being in XXXX for a period of time. They are listed as XXXX XXXX XXXX on the statements. I have included the first and last statement of the year for years XX/XX/XXXX through the end of XXXX. The loans were in forbearance as of XXXX. I was not aware that my loans were defaulted until XX/XX/XXXX. I received nothing in writing at that point. I was told that a letter from XXXX was on its way in the mail for my father and I each at my parents ' address.

Company response to consumer: Closed with explanation