Credit reporting or other personal consumer reports -- Problem with a company's investigation into an existing problem -- Complaint #13190116
Complaint Overview
Complaint ID: 13190116
Company: Transworld Systems INC
Product: Credit reporting or other personal consumer reports
Sub-Product: Credit reporting
Issue: Problem with a company's investigation into an existing problem
Sub-Issue: Their investigation did not fix an error on your report
State: Arizona
ZIP Code: 85041
Date Received: 2025-04-25T12:00:00-05:00
Date Sent to Company: 2025-04-25T12:00:00-05:00
Company Response: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Submitted Via: Web
Consumer Narrative
I am disputing inaccurate reporting by Transworld Systems regarding an XXXX XXXX XXXX ( XXXX ) account. On XX/XX/scrub> 2025, at XXXX XXXX, I spoke with XXXX, a manager at XXXX, who confirmed that my account was assigned ( not sold ) to Transworld Systems. He also stated that XXXX retains ownership of the account and that Transworld Systems was only assigned for collection purposes. Additionally, a representative from XXXX informed me that if I made a small payment of {$85.00}, XXXX would then set up a payment arrangement with me, and they would instruct Transworld Systems to stop reporting the account to the credit bureaus. Despite this, Transworld Systems continues to report the account to XXXX as a delinquent collection, without noting that the original creditor retains ownership and is offering a resolution directly with me. I disputed the account with XXXX but Transworld Systems verified the account as accurate, and no changes were made. Transworld Systems has also never provided any written communication regarding this debt, only verbal communication. According to APSs publicly available Service Schedule 1, Section 6.5, XXXX refers debts to collection agencies for collection purposes, meaning XXXX retains ownership of the debt. Therefore, Transworld Systems is acting only on behalf of XXXX, not as the new owner of the debt. Their continued reporting is misleading and damaging my credit, despite me actively communicating with XXXX to resolve the account. This reporting appears to violate the Fair Credit Reporting Acts requirement for maximum possible accuracy. Transworld Systems continued reporting of the collection account may violate the following consumer protection laws : Fair Credit Reporting Act ( FCRA ), 15 U.S.C. 1681s-2 ( b ) : Furnishers of information ( like Transworld Systems ) are required to provide complete and accurate information to credit reporting agencies and must promptly update or correct information when they learn it is incomplete or inaccurate. Since the original creditor ( XXXX ) retains ownership of the debt and is offering a payment arrangement directly with me, Transworlds continued reporting of the debt as an active delinquent collection is misleading and not fully accurate. Transworld Systems also failed to properly investigate my dispute with XXXX verifying the debt as accurate without considering the updated status of the account. Fair Debt Collection Practices Act ( FDCPA ), 15 U.S.C. 1692e and 1692f : Debt collectors are prohibited from using any false, deceptive, or misleading representations in connection with the collection of a debt. By continuing to report the debt as an active collection despite the original creditors offer to resolve it directly, Transworld Systems is misrepresenting the status of the debt, which may mislead other creditors, lenders, or third parties reviewing my credit report. Additionally, the failure to provide written validation of the debt, and relying only on verbal communications, raises concerns under FDCPA 1692g, which requires debt collectors to provide consumers with a written notice of the debt and their rights to dispute it within five days of initial communication. Given these issues, I respectfully request that the CFPB investigate these potential violations and ensure the inaccurate information is corrected or removed from my credit reports.
Frequently Asked Questions
What is Complaint #13190116 about?
Complaint #13190116 was filed against Transworld Systems INC regarding Credit reporting or other personal consumer reports specifically about Problem with a company's investigation into an existing problem. It was received by the CFPB on 2025-04-25T12:00:00-05:00.
How did Transworld Systems INC respond to this complaint?
The company responded with: "Closed with explanation". The response was timely.
What is the risk level of this complaint?
See the risk assessment section for details on this complaint's risk profile.
How do I file a similar complaint?
You can file a complaint with the CFPB at consumerfinance.gov/complaint. Select the appropriate product category (Credit reporting or other personal consumer reports) and describe your issue in detail.
Can I see other complaints against Transworld Systems INC?
Yes, visit the Transworld Systems INC company profile at readthecomplaint.com/company/transworld-systems-inc to see all complaints, risk scores, and analysis.
Disclaimer
This analysis is AI-generated based on publicly available CFPB complaint data. It does not constitute financial or legal advice.