TransWorld Systems Faces FDCPA Lawsuit for Debt Collection Abuse

Illinois plaintiff Donald J. is suing nationwide debt collection company TransWorld Systems Inc. for allegedly using intimidating and abusive collection methods in an attempt to claim an unpaid debt. Donald claims that the defendant had made several unwanted phone calls, and had threatened severe legal penalties if the debt was not paid.

TransWorld Systems is a subsidiary of NCO Group Inc., which operates in over 100 locations around the world.

While Donald admits to accumulating a debt, there is the Federal Debt Consumer Protection Act (FDCPA) and certain federal policies that protect him and other consumers from being harassed by collection or finance companies, regarding the insistent financial obligation.

According to the plaintiff, the debt had accumulated through household or personal expenses that had been off-set from a major transaction. The harassment over the debt started on Jan. 22, 2015, when the plaintiff had reportedly received a phone call from the defendant regarding the debt.

The FDCPA lawsuit claims that during this phone call, the plaintiff had asked for the representative’s name, the company they represented, and the nature of the alleged debt. However, the representative had disconnected the line without providing any answers to these questions.

Immediately after the phone call, Donald alleges he called TransWorld to report the call and discuss the nature of the debt. During this call, Donald allegedly stated that he had legal representation and provided his attorney’s contact information. After this, the line had disconnected, leaving the plaintiff to attempt to call the defendant three more times, meeting the same reception each time, according to the FDCPA lawsuit.

Eventually, Donald had reached a TransWorld representative named Chris, to whom Donald provided the name of his lawyer and lawyer’s contact information. Chris responded by stating that the defendant was also a law firm, and that the plaintiff was still liable for the debt. At this point, the defendant’s representative had threatened to access the plaintiff’s wages to pay the debt if he did not do so in a timely manner.

Overview of FDCPA Violations

The actions described above each qualify as violations under the Federal Debt Consumer Protection Act (FDCPA), as the company had falsely represented itself as a legal authority and had threatened extreme repercussions if the debt was not paid. The FDCPA was established to protect American consumers from aggressive debt collecting practices of businesses, and insures debtors a fighting chances when faced with an alleged financial obligation.

It is not unheard of for companies to use unscrupulous means to collect on an alleged debt of a plaintiff, nor is it unheard of the company taking extreme measures, including:

• Threat of wage garnishment
• Attempting to collect more than is actually owed
• Calling third parties about the alleged debt
• Calling debtor before 8 am or after 9 pm
• Calling repeatedly for the alleged debt
• Using abusive language or harassment
• Threatening to press criminal charges or fraud charges
• Suing for the debt that is beyond the Statute of Limitations
• Failing to reveal their identity
• Contacting debtor when they are represented by an attorney
• Trying to collect on a debt that was already paid
• Making false or misleading representations
• Claim to be affiliated with a government agency

Due to this harassment, Donald had been diagnosed with anxiety, when he had already been diagnosed with bipolar disorder years prior. These circumstances forced the plaintiff to take extra doses of medication, to prevent an anxiety attack.

On top of the FDCPA violations, Donald is filing legal action against TransWorld for stress, aggravation, emotional distress, and mental anguish. He is pursing the maximum civil and punitive penalties the court will allow, and hopes to discourage TransWorld and other companies from trying these debt collection practices in the future.

This FDCPA lawsuit is Donald J. v. TransWorld Systems Inc., Case No. 3:15-cv-03088-SEM-TSH, in the U.S. District Court of Central Illinois, Springfield Division.

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DISCLAIMER: Debt collection itself is not illegal. However, debt collection firms collecting on consumer debts must adhere to the FDCPA. Even though debt attorneys are investigating these companies, their debt collection practices may be legal.