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Transworld debt-collection class action overview:
- Who: A North Carolina woman is suing Transworld debt-collection agency.
- Why: The plaintiff says Transworld sends people false and misleading debt-collection letters as part of its debt-collection practice.
- Where: The Transworld debt collection class action was filed in a North Carolina federal court.
Transworld Systems sent a North Carolina woman an inaccurate and unclear debt collection notice that “grossly misstated” elements of the debt, and it does this as a practice, a new class action lawsuit alleges.
Plaintiff Kathleen McKee filed the class action lawsuit against Transworld Systems Inc. on Jan. 25 in a North Carolina federal court, alleging violations of the Fair Debt Collection Practices Act (FDCPA).
According to the lawsuit, McKee had a student loan debt with creditor National Collegiate Student Loan Trust. National contracted with Transworld to collect the alleged debt, and on Dec. 2, 2022, McKee got an initial collection letter from the company, she says.
According to McKee, the letter stated a balance of more than $39,000, but did not explain how Transworld had got to that number.
“The alleged balance includes payments made in the amount of $11,137.25 and interest charged of $20,185.81, without explanation,” she says in the lawsuit. “Specifically, the Letter grossly misstates the payments made and does not advise whether interest continues to accrue on the debt.”
This is in violation of the law, McKee says, adding that she believes the debt is also time-barred from legal enforcement by the applicable statute of limitations.
Transworld letter caused plaintiff stress, lawsuit alleges
According to the lawsuit, the allegedly misleading statements caused McKee stress because she was unable to ascertain the exact amount owed on the alleged debt, the makeup of that total amount and whether the debt would become larger over time.
The letter should have advised McKee she could not be sued and that the debt was unenforceable, she says.
“To state or imply otherwise, affirmatively or by omission, was false, misleading and deceptive,” the lawsuit states. “Defendant’s improper acts, and the Plaintiff’s reliance thereon, also caused the Plaintiff emotional harm in the form of anxiety and stress.”
McKee seeks to represent anyone in North Carolina to whom Transworld sent an initial collection letter in the past year attempting to collect a consumer debt wherein the letter fails to disclose the inability to sue despite being time-barred from enforcing the debt and fails to disclose accurate payment information and whether interest continues to accrue.
She is suing for violations of the FDCPA and seeks certification of the class action, damages, fees, costs and a jury trial.
In 2021, Transworld Systems was hit with a class action lawsuit alleging it improperly used a third-party vendor during its debt-collection process.
What do you think of the allegations against Transworld? Let us know in the comments.
The plaintiff is represented by C. Randolph of The Emory Law Firm PC.
The Transworld Systems class action lawsuit is Kathleen McKee, et al. v. Transworld Systems Inc., Case No. 3:23-cv-00042-MOC-DSC, in the U.S. District Court for the Western District of North Carolina.
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7 thoughts onTransworld class action claims debt-collection letters inaccurate, unclear
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Called my phone didn’t verify who the were speaking to preceded to give me all of
My neighbors credit information
They won’t remove something paid from credit
Transworld is charging me money that medicaid already paid them fraudulent
The name of this company looked familiar so I clicked on it. I’m from NC as well and this is WHY it looked familiar… I TOO have had the similar dealings with them.
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please add me