Consumer complaint received 2025-11-26 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: IL

Complaint narrative:
Complaint Against XXXX  for Failure to Conduct a Reasonable FCRA Investigation I am an Illinois resident and I am filing this complaint against XXXX  for failing to conduct a reasonable investigation of a disputed tradeline, in violation of the Fair Credit Reporting Act ( FCRA ), 15 U.S.C. 1681i. 

The disputed account is a private student loan originally originated by XXXX XXXX XXXX  ( South Dakota ) for my medical school, XXXXXXXX XXXX XXXX XXXXXXXX ( XXXX ). I later learned that the account is now being reported and serviced by XXXX  XXXX XXXX ( XXXX ) and that the supposed owner is XXXX, XXXX, an entity affiliated with XXXX parent company. 

This loan appears to be part of an unlawful rent-a-bank / true-lender scheme in which : XXXX abruptly told students XXXX XX/XX/year>, just days before the XXXX  began, that we could no longer use XXXX ( Which Department of Education Confirmed is a lie ) and had to either ( 1 ) take a XXXX-arranged private loan with XXXX XXXX XXXX, ( XXXX XXXX pay out of pocket in full, or ( XXXX ) withdraw ; XXXX  were effectively forced into a XXXX private loan ; XXXX then sold the loan to XXXX, XXXX / XXXX parent group, but neither XXXX, XXXX, nor XXXX XXXX XXXX has ever provided me with a chain of title or any documentation proving a lawful assignment of my loan. 

I disputed this tradeline with XXXX  on the basis that the furnisher can not prove it owns or has any right to report or collect this debt. In my dispute, I clearly explained that : XXXX XXXX Bank told me it no longer owns the loan and refused to identify the purchaser or provide assignment documents. 

XXXX has never provided proof of ownership or chain-of-title documentation despite my written validation requests. 

XXXX, XXXX has never provided any documentation linking my specific loan to any lawful purchase from XXXX. 

A lawsuit is pending. 

Since this account is a financial fraud, it should not be listed under my credit report I attached or referenced my correspondence with XXXX and XXXX, which shows that no one can or will produce the chain of title. 

Despite this, XXXX  responded that the account was verified and left the tradeline on my report. It is clear that XXXX  simply parroted the furnishers response and accepted their word without obtaining or reviewing any underlying documents, even though ownership and standing are the core of my dispute. 

Under 15 U.S.C. 1681i ( a ) ( 2 ) and 1681i ( a ) ( 4 ), XXXX  is required to conduct a reasonable reinvestigation of disputed information. Courts have repeatedly held that a reinvestigation that consists only of contacting the furnisher and accepting its response, without reviewing documentation of ownership when ownership is disputed, is not reasonable under the FCRA. Here, XXXX  ignored the central issue I raisedlack of chain of title and proof of ownershipand mechanically marked the account verified. 

As a result of this failed investigation and continued negative reporting : The disputed account is still being reported as delinquent ; My credit score has dropped from approximately XXXX to around XXXX in 3 months I have suffered credit damage and significant distress from being reported delinquent on a loan whose ownership has never been validated. 

I have already filed complaints about the underlying loan and rent-a-bank structure with the FDIC, the Consumer Financial Protection Bureau ( CFPB ), and the Illinois Attorney General. This complaint is specifically about XXXX conduct as a credit reporting agency and its failure to comply with its FCRA obligations. 

Requested Relief : That XXXX  be required to conduct a proper, documented reinvestigation, including obtaining and reviewing actual chain-of-title and assignment documents from XXXX, XXXX, and XXXX, XXXX ; That, if XXXX  can not obtain such documentation, it be required to delete or suppress the disputed tradeline in its entirety from my credit file ; That this tradeline be clearly marked as consumer disputes this account while any reinvestigation is pending ; and That appropriate enforcement action be considered against XXXX  for failing to conduct a reasonable investigation under the FCRA. 

I am happy to provide : My prior dispute letters to XXXX  ; XXXX verified response ; My validation/chain-of-title requests to XXXX, XXXX, and XXXX XXXX XXXX ; Any responses ( or lack thereof ) ; and Copies of my credit reports showing the disputed tradeline and score impact. 

Thank you for your attention to this matter.

Company response to consumer: Closed with explanation