How To Remove Transworld Systems From Your Credit Report - The Full Guide
Receiving a phone call or email from a company claiming to be a debt collector can be a stressful experience. All sorts of questions come to mind when you receive their messages. Are they legitimate? What if I can’t afford their payments? How will this affect my credit score?
One such company that you may have received correspondence from is Transworld Systems. If you are contacted by Transworld Systems, it means that one or more of your debts has been sold or passed on to them from the original creditor. As a debt collection company, they will not go away on their own, but there are steps that you can take to ensure that your credit score is not completely destroyed by their involvement.
In this article, we will cover whether Transworld Systems is a legitimate debt collection company, how to deal with them when they contact you, and how to remove them from your credit report.
Are Transworld Systems legitimate?
The first question you might ask when you receive initial correspondence from Transworld Systems is, are they a legitimate debt collector? There are many debt collection scams out there and it can be even more devastating to your finances and credit score if you become a victim of a debt collection scam. It is incredibly important that you perform your due diligence when you are contacted by anyone claiming to be a debt collector.
Transworld Systems, however, is a legitimate debt collection company. In fact, they are one of the biggest debt collectors in the country. While they are not currently accredited by the Better Business Bureau, they do have a B rating on their profile.
If Transworld Systems contacts you, it is legitimate.
What type of company is Transworld Systems?
Transworld Systems Incorporated is a debt collection agency. They are either hired by creditors to collect debts on their behalf, or they acquire debts sold to them by original creditors, and essentially, they become the company to whom you owe your debt.
Once Transworld Systems has acquired your debt or been hired to collect the debt, they will either contact you by phone or by mail.
Ignoring calls and letters from Transworld Systems is not a recommended approach. Transworld Systems operates using skip tracing tactics to successfully collect debts. This means that they attempt to pinpoint a debtor's location in the event that they have relocated or are ignoring correspondence.
As with many debt collection agencies, Transworld Systems have been reported to use aggressive methods of debt collection including mailing wage garnishment letters to debtors as well as harassing debtors with relentless phone calls.
If you do find yourself having to deal with Transworld Systems, there are ways to handle them effectively and protect your credit score from suffering too much damage from their presence.
Who does Transworld Systems collect for?
There are various companies that Transworld Systems is known to collect for. These companies range from state and federal government agencies to educational and healthcare institutions, to financial organizations.
Like most debt collection agencies, Transworld Systems will purchase debts from any creditor that is unwilling to continue trying to settle the debt. Transworld Systems will purchase your debt at a fraction of the debt total, but you will still be required to pay the full amount of your debt owed to them.
How to remove Transworld Systems from your credit report
If you do find that Transworld Systems has appeared on your credit report, there are a few steps you can take to make sure that they are removed from your report and credit rating. The most important thing to remember, however, is that you should never ignore Transworld Systems if they are contacting you. They will not go away and the further the issue escalates, the more damaging it will become to your credit score.
Know your rights
The first thing to do when you receive correspondence from Transworld Systems is to know what your rights are. A full and extensive list of the rights of debtors is laid out in the Fair Debt Collection Practices Act.
The main points of this act mainly pertain to the manner in which a debt collection agency may contact you. Your rights include things such as not being called by a debt collector between the hours of 9 PM and 8 AM, and debt collectors being prohibited from contacting your place of employment.
Similarly, a debt collection agency is not allowed to threaten imprisonment, seizure of assets, physical harm, damage to property, damage to reputation, or use profane language. If you have a lawyer representing you, debt collectors are required to speak to them instead of you and they are prohibited from contacting your friends and family or disclosing your debts to them.
Should any violations of these rights occur while dealing with Transworld Systems, they can be reported to your state attorney general, the CFPB, and the FTC. In the case that your rights have been violated by Transworld Systems, you may be able to file a lawsuit against them.
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Verify the debt with Transworld Systems
One of the first steps in dealing with Transworld Systems is to verify the debt with them. Debt collectors are required to send debtors a Notice of Debt within 5 days of their first correspondence.
A Notice of Debt must contain extensive information about the debt, including the name and mailing address of both the collector and the debtor, the account number and creditor name associated with the debt, and the amount totalling the debt including a breakdown of additional fees, payments, and interest.
Also required in a Notice of Debt is an itemization date. This stated date is useful for the debtor to understand when the statute of limitations expires on the debt and subsequently when it will disappear from your credit report.
Debt collectors are also required to detail the rights of the debtor under the Fair Debt Collection Practices Act within a Notice of Debt and include a returnable form in which the debtor can declare an intent to dispute the debt.
If you receive a Notice of Debt from Transworld Systems it is in your best interest to dispute the debt. This is the easiest way to verify that the debt is genuine. Also, if Transworld Systems cannot prove that the debt belongs to you as a named debtor, they are unable to legally collect the debt, nor report it to credit bureaus, meaning that it cannot be added to your credit report.
Stop calls from Transworld Systems
Up until November 2021, it was possible to receive up to 15 phone calls per day from a single debt collector. This was an unacceptable amount and added even more unnecessary stress to the situation for the debtor.
Under new regulations, debt collectors are prohibited from calling a debtor more than 7 times within seven consecutive days. If the debtor answers the phone, the collectors are not allowed to call again for a period of 7 days after the phone call.
It is possible to prevent debt collectors from contacting you at all. This can be achieved by sending a cease letter stating that you want them to stop contacting you. It is important that you keep a copy of the letter for your own records, and send it via certified mail to ensure that you can prove that you sent the letter.
Once you have sent a cease letter, the collection agency may only contact you to verify receipt of the letter and to inform you of any legal action that they may take.
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Contest the debt
If you believe that the debt stated by the collection agency is not yours, it is important that you contest the debt directly with the credit bureau by filing a dispute. The credit bureau has a responsibility to investigate your debt and verify whether it is yours. If they are unable to verify the debt, they must remove it from your record.
This may not stop Transworld Systems from attempting collection efforts.
Settle with Transworld Systems
If the debt has been verified as belonging to you, the easiest way to remove the Transworld Systems from your credit report is to settle the debt with them. However, this does not mean that you have to pay the entire debt off.
Due to the way in which debt collectors purchase your debt, they can make a profit even when a fraction of the debt has been paid. Because of this, the debtor has room to negotiate. In most cases, an agreement can be reached in which the debtor pays a certain percentage of the debt in return for Transworld Systems removing the account from your credit report. This is known as pay to delete.
Hire a credit repair company
If the idea of negotiating with an aggressive debt collection agency is too much for you to deal with, you can hire a credit repair company. A credit repair company becomes a middleman between you and the debt collector, their job is to get you as the debtor the best possible outcome from your debt in terms of protecting your credit score and settling the debt.
It is important to do your due diligence when selecting a reputable credit repair company as there are many that have a less than stellar reputation.
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What if they sue?
A lawsuit is always a possibility when debt collection agencies are involved. If you do receive notice of legal action from Transworld Systems, do not ignore it. Ignoring legal action from a debt collector can result in a worse outcome for your financial situation and your credit report.
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Receiving correspondence from a debt collection agency is never a nice feeling. However, with these tips, it is possible to achieve a positive outcome for yourself and appease the debt collectors. If you verify that a debt is yours and the collector is genuine, never ignore their attempts at collection.
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