Transworld Systems Inc.
Transworld Systems Inc. (Transworld) is a third-party debt collector that provides services to medical companies, dental companies, education facilities, Fortune 500 companies, and small businesses. Transworld was founded in 1970 and is headquartered in Santa Rosa, California. According to its website, Transworld collected approximately $865 million in 2016.
Within the last three (3) years, consumers reported 283 complaints to the Better Business Bureau. In September 2017, the Consumer Financial Protection Bureau (CFPB), a Government agency tasked with protecting consumers from unfair, deceptive or abusive debt collection practices, took action against Transworld for engaging in unlawful debt collection practices. The CFPB found that Transworld filed collection lawsuits in situations where the debt could not be proven or was time-barred pursuant to the statute of limitations.
When requested, a debt collector must provide proof of a debt. The Federal Debt Collection Practices Act (FDCPA) allows consumers to request a creditor or debt collector to send proof of the debt. A consumer has thirty (30) days to dispute a debt and to request proof of the debt after being provided notice of the debt by the creditor or debt collector.
The FDCPA also prevents creditors and debt collectors from filing lawsuits against old debt. Debt collectors only have a certain number of years to file a lawsuit to collect on a debt. This is referred to as the statute of limitations. In California, there is a four (4) year statue of limitation for filing a lawsuit to collect a debt. Debts that are beyond the statute of limitations are considered “time-barred.”
Due to these violations of the FDCPA, Transworld was required to stop filing lawsuits that were time-barred, to stop attempting to collect debt without proper documentation, and to pay a $2.5 million civil penalty.
Creditors and debt collectors should be held accountable for these unethical and unlawful practices. If you are being harassed or subjected to any of these, deceptive, or abusive debt collection practices, it is time to hold Transworld accountable. Please contact our office for a free, no obligation consultation at 1-800-219-3577.