Transworld Systems Debt Collection, ‘Unconscionable,’ Disclosed Debtor’s Private Info, Says Class Action

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Transworld Systems Debt Collection Class Action Lawsuit Overview: 

• Who: Arnetta Sturdivant lodged a class action lawsuit against Transworld Systems Inc.  
• Why: Sturdivant alleges Transworld Systems broke the law when it used a third-party vendor to contact her about an alleged debt. 
• Where: The Transworld Systems debt collection class action lawsuit was filed in North Carolina federal court

Transworld Systems improperly used a third-party vendor during its debt collection process, a new class action lawsuit alleges. 

Lead plaintiff, Arnetta Sturdivant, claims Transworld Systems violated the Fair Debt Collection Practices Act (FDCPA) when it conveyed information to a third-party vendor so it could write a debt collection letter addressed to her and other consumers.  

Sturdivant, a resident of Hoke County, North Carolina, wants to represent other consumers whose personal information was disclosed to a third party vendor during the Transworld Systems debt collection process. 

Plaintiff alleges she and other Class Members never consented to the defendants communication concerning either the alleged debt or their personal and/or confidential information. 

Transworld Systems Debt Collection “Unconscionable”

Transworld Systems has used third-party vendors to contact alleged debtors “thousands” of times in order to maximize its profits, and without taking into consideration the personal or private information it is disclosing, the class action lawsuit alleges. 

“The unauthorized disclosure of a consumer’s private and sensitive information is both unfair and unconscionable,” states the Transworld Systems debt collection class action lawsuit. 

The FDCPA was enacted by Congress in September 1977 in order to establish protections for consumers against “abusive” debt collection practices. It is an amendment to the Consumer Credit Protection Act. 

Using a third-party vendor to communicate with a debtor was one of the exact things the FDCPA was created to prevent, according to the Transworld Systems debt collection class action lawsuit. 

“Specifically, Congress sought to protect consumers from communications by debt collectors to third parties,” claims the class action lawsuit. 

Sturdivant is demanding a jury trial. 

Portfolio Recovery Associates LLC was hit with a similar class action lawsuit last month that alleged the debt collectors broke the law by giving out the private information of debtors to a third party. 

Ally Bank was on the receiving end of a class action lawsuit last month which alleged it violated the privacy of its customers by “inadvertently” sending their private login details to a third party.

Have you ever been contacted by a third-party attempting to retrieve a debt on a debt collector’s behalf? Let us know in the comments! 

The plaintiff is represented by Arthur H. Piervincenti, P.A. and David M. Barshay, Esquire of Barshay, Rizzo & Lopez, PLLC. 

The Transworld Systems Debt Collection Class Action Lawsuit is Sturdivant v. Transworld Systems Inc., Case No. 1:21-cv-00644, in the U.S. District Court for the Middle District of North Carolina Durham Division. 

Read About More Class Action Lawsuits & Class Action Settlements:

• OCTA Toll Roads Class Action Settlement
• Ally Bank Showed Private Customer Info to Third Parties, Class Action Lawsuit Alleges
• Debt Collection Company ‘Recklessly’ Gave Customer Info to Others to Recover Debts, Class Action Alleges
• Best Buy, Dick’s Sporting Goods, Other Major Chain’s Software and Analytics Service Provider Invades Consumers’ Privacy and Falsely Labels Them Fraudsters, Class Action Alleges