Consumer complaint received 2026-05-18 00:00:00
Product: Debt collection — Rental debt
Issue: Attempts to collect debt not owed — Debt was paid
Company: TRANSWORLD SYSTEMS INC
State: PA

Complaint narrative:
I am filing this CFPB complaint against Transworld Systems Inc. / TSI, XXXX XXXX XXXX for the reporting and attempted collection of an alleged apartment debt that was already resolved through a Pennsylvania XXXX XXXX XXXX landlord/tenant case. The alleged original creditor is XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX. The disputed collection account is being reported by Transworld Systems Inc. / TSI, account reference XXXX * *, with an alleged balance of {$2300.00}. This account has appeared on both XXXX XXXX XXXX as a derogatory collection account. This reporting is inaccurate, incomplete, unverifiable, misleading, and legally defective. The underlying landlord/tenant matter was already handled in Magisterial District XXXX XXXX XXXX XXXX XXXX XXXX Pennsylvania, under docket number XXXX. The docket shows that XXXX XXXX XXXXXXXX, XXXX filed a landlord/tenant action against XXXXXXXX XXXX XXXX XXXX XXXX XXXX The court docket shows the case status as Closed, and the disposition for both defendants is listed as Settled on XX/XX/XXXX. The court docket does not show a money judgment against me. The court docket does not show possession granted. The court docket does not show possession granted if a money judgment was not satisfied. The court docket does not support TSI reporting this alleged account as an open, unpaid, derogatory collection account. There is also a clear balance discrepancy. The court docket shows a claim amount of {$2300.00}, but TSI is reporting {$2300.00} on my credit reports. That is an {$81.00} discrepancy. TSI has not provided any itemized ledger, court order, settlement agreement, lease provision, payment history, fee authorization, or other documentation explaining why it is reporting {$2300.00} when the court claim amount was {$2300.00} and the court matter was settled. TSI is now reporting this alleged debt to XXXX as well. The XXXX reporting shows the account as a collection agency/attorney account, with a balance of {$2300.00}, high balance of {$2300.00}, past due amount of {$2300.00}, date opened XX/XX/XXXX, date updated XX/XX/XXXX, and remarks stating Placed for Collection. This is extremely damaging because it makes the account appear as a valid unpaid collection even though the attached court docket shows the landlord/tenant case was settled and closed months earlier. TSI is also reporting or has reported this same alleged account to XXXX as a collection/charge-off type derogatory account. XXXX is continuing to publish the collection account even though the court record contradicts the reporting. I never received a proper written debt validation notice from TSI before this alleged collection appeared on my credit reports. I was not given the legally required opportunity to dispute the debt or request validation before TSI used credit reporting as leverage. I did not receive a proper notice advising me of the alleged debt, the creditor, the amount, or my 30-day right to dispute and request verification. This appears to be debt parking. TSI placed or caused the placement of a disputed alleged debt on my consumer reports without first providing meaningful notice and validation. I discovered the alleged debt through damaging credit reporting rather than through a proper written validation notice. TSIs conduct appears to violate the Fair Debt Collection Practices Act, including but not limited to 15 U.S.C. 1692e, 15 U.S.C. 1692e ( 2 ) ( A ), 15 U.S.C. 1692e ( 8 ), 15 U.S.C. 1692f, 15 U.S.C. 1692f ( 1 ), and 15 U.S.C. 1692g. TSI appears to be misrepresenting the character, amount, and legal status of the alleged debt ; communicating disputed and misleading credit information; attempting to collect an amount not authorized by contract, court order, settlement terms, or law ; and failing to provide proper debt validation notice. TSIs conduct also appears to violate Regulation F, 12 C.F.R. 1006.30, because TSI appears to have furnished this alleged debt to XXXX XXXX XXXX before properly communicating with me about the debt and giving me a meaningful opportunity to dispute it. XXXX XXXX XXXX are also on notice that this account is disputed and contradicted by court records. Under the Fair Credit Reporting Act, Equifax and TransUnion are required to maintain reasonable procedures to assure maximum possible accuracy and conduct a reasonable reinvestigation when a consumer disputes inaccurate or incomplete information. They can not simply rely on an automated verification or a generic response from TSI while ignoring the attached court docket showing the matter was settled and closed. The reporting by TSI, XXXX XXXX XXXX is causing serious harm to my credit profile, financial reputation, housing profile, and ability to obtain fair credit. This collection account is being reported as though there is a valid unpaid debt, even though the court case was settled, no judgment is reflected on the docket, no possession was granted, no proof of an unpaid surviving balance has been provided, and the reported balance does not match the court claim amount. I am attaching proof, including the TransUnion credit report screenshots, XXXX credit report page, and the XXXX XXXX XXXX docket showing the case was settled on XX/XX/XXXX. I am requesting CFPB intervention because TSI is attempting to collect and furnish a settled, disputed, unverifiable apartment debt to multiple credit bureaus, and XXXX XXXX XXXX are reporting the account without requiring competent documentary proof.

Company response to consumer: Closed with explanation