Consumer complaint received 2025-06-20 00:00:00
Product: Debt collection — I do not know
Issue: Attempts to collect debt not owed — Debt is not yours
Company: TRANSWORLD SYSTEMS INC
State: IL

Complaint narrative:
Re : Account with Transworld Systems Dispute Under FCRA I am writing to dispute the accuracy of the following collection account reported on my XXXX  credit report : Creditor : Transworld Systems Account Status : Open collection account Balance : Past due balance reported Dates : Balance updated XXXX XXXX Status updated XX/XX/XXXX Collection status shown as beginning XX/XX/XXXX Issues : 1. Payment history chart shows accounts open/blank for XXXX XX/XX/XXXX, then collection starting in XXXX. 

2. The reported status update date ( XXXX ) contradicts the collection start month ( XXXX ). 

3. Reporting an open collection after mid XXXX conflicts with the collection timeline. 



These inconsistencies violate the Fair Credit Reporting Act ( FCRA ), including : 1681e ( b ) : Requires maximum possible accuracy in credit reporting.

1681i ( a ) : Requires deletion or correction of unverifiable or inaccurate data.

Legal Case Summary Transworld Systems Inc. ( TSI ) As of XX/XX/XXXX, Transworld Systems Inc. ( TSI ) has been involved in multiple lawsuits and regulatory actions for debt collection and credit reporting practices : 1. CFPB Consent Order XX/XX/XXXX The Consumer Financial Protection Bureau ( CFPB ) ordered TSI to pay {$2.00} XXXX in penalties. 

Violations included : Filing false or unverified affidavits in lawsuits related to student loan debt collection. 

Collecting debts without proper documentation or legal standing. 



2. Class Actions & FDCPA Violations ( XXXX ) TSI faced several class action lawsuits for : Sending misleading or deceptive collection letters. 

Contacting unauthorized third parties. 

Failing to provide proper debt validation. 

Many of these cases were brought under the Fair Debt Collection Practices Act ( FDCPA ). 



3. Osorio v. Transworld Systems ( 3rd Circuit, 2024 ) Plaintiff alleged TSI failed to clearly identify the creditor, violating the FDCPA.

The case was dismissed due to lack of concrete injury, despite the potential technical violation.

4. Brown v. Transworld Systems ( 9th Circuit, 2023 ) The court ruled that even minor misleading acts during debt collection can give rise to FDCPA violations.

Helped reinforce consumer protections in collection disputes.

5. Miller v. Transworld Systems ( E.D. Pennsylvania, 2024 ) Filed under the Fair Credit Reporting Act ( FCRA ).

Alleged TSI reported a collection without verifying account details.

Case was dismissed due to lack of specific factual support, not necessarily because the claim lacked merit.

Conclusion : Transworld Systems Inc. has a documented legal history of missteps in debt collection and credit reporting. These cases reinforce the need for close scrutiny and accountability, especially if they are reporting inconsistent or inaccurate data on consumer credit reports.

Requested Action : Please thoroughly reinvestigate this account. If Transworld can not verify : The correct collection start date, The balance as of XX/XX/XXXX, The open status, then I demand the account be removed from my credit file. 



Please complete your investigation within the 30day time limit required by the FCRA and send me a written outcome, including details of the verification process and sources relied upon by XXXX. 



Thank you for your prompt resolution. 


Active & Recent Lawsuits Against Transworld Systems Heres an up-to-date overview : CFPB Consent Order ( XX/XX/XXXX ) Transworld ( TSI ) agreed to pay $ XXXX and implement compliance improvements for filing false/unsupported affidavits and collecting student loans without proof.

Class Actions & FDCPA Cases Multiple class actions ( XXXX ) alleging misleading collection letters, failure to state rights, contacting unauthorized third parties, etc.

Martha Osorio v. Transworld ( 3rd Cir, 2024 ) : Alleged FDCPA violations for creditor identity clarity ; case dismissed ( no concrete injury ).

Brown v. Transworld ( 9th Cir, 2023 ) : Ruling held that some collection acts can still give rise to FDCPA claims Recent FCRA/FDCPA Filings ( 2024 ) Miller v. Transworld ( E.D. Pa, filed 2024 ) : Claim under FCRA ; dismissed for lack of specific factual allegation.

These ongoing and recent legal actions highlight documented patterns of misreporting, misleading practices, and inaccurate debt validation by Transworld. 


Sincerely, XXXX XXXX XXXX

Company response to consumer: Closed with explanation