Table of Contents
What is Transworld Systems?
Founded in 1970, Transworld Systems, Inc. is a business processes outsourcing company that provides debt collection services for government agencies, healthcare and educational institutions, and businesses in a wide range of industries. 1
Owned by private equity firm Platinum Equity, Transworld Systems claims to be the largest accounts receivable management company in the U.S. 2 3
Transworld Systems offers the following debt collection services: 4
- Loan servicing
- Bankruptcy processing
- Proof of claims services
- Probate court filing services
- Consumer data collection and analytics 5
As an outsourcing company, Transworld Systems also provides accounts receivable and customer relationship management services.
What is Transworld Financial?
Transworld Financial is one of several alternative names that Transworld Systems may appear under on your credit report.
Other names Transworld Systems may appear as on your credit report include:
- Transworld Collections
- Transworld Inc
- Transworld Sys Inc
- Transworld Financial
- Transworld Systems Debt Collection
- Transworld Monetary
- TSI Co
- TSI 33
- TSI 940
- TSI 980
- TSI 55
Who does Transworld Systems collect for?
Transworld Systems offers its services for the following institutions and businesses: 6 7
- Colleges and universities
- Government agencies
- Healthcare providers
- Private lenders
- Small to mid-sized businesses
This means that Transworld Systems collects the following debts: 6 8
- Federal and private student loans
- Back taxes and toll fees
- Court fees
- Medical bills
- Consumer and commercial loans
Government clients of Transworld Systems
Transworld Systems holds contracts with city, county, and state taxation and revenue departments across the country. 8
On a national level, Transworld System has contracted with the following agencies:
- Department of Health and Human Services 9
- Department of Education 10
- Department of the Treasury 11
- General Services Administration 12
Transworld is one of only five debt collection agencies contracted with the Department of the Treasury’s Bureau of the Fiscal Service, which collects debt owed to federal government agencies. 13
Transworld and the National Collegiate Student Loan Trusts
The National Collegiate Student Loan Trusts form an association of statutory trusts that purchases student loan debt from banks. 14 Besides its other debt collection services, Transworld Systems regularly files lawsuits against borrowers on behalf of the trusts. 15
Is Transworld Systems a scam?
No, Transworld Systems isn’t a scam. They’re a legitimate debt collection agency.
That being said, Transworld has been subject to several recent high-profile lawsuits. For instance, in 2020 and 2021, they settled lawsuits with the New York and Massachusetts attorney generals after being found to have violated consumer protection laws when collecting on student loans. 16 17
To verify what debts you owe Transworld Systems, check your account by logging into the Transworld Systems online portal or contacting them by their official phone number.
VIDEO: Transworld Systems in 2 Minutes—Fix Your Credit Report & Know Your Rights
How to stop Transworld Systems from calling you
Transworld Systems will call, email, or mail you if they believe you have an unsettled debt. The reason debt collectors like these are calling you is simple—they want to pressure you into paying up.
Unfortunately, Transworld Systems representatives will keep trying to contact you unless you pay the debt, prove that it doesn’t belong to you, or reach an agreement with them (or with your original creditor).
Don’t ignore debt collectors like Transworld Systems—in the end, you may get sued, and you may even have your wages garnished. It’s smarter to engage with them tactically to ensure you don’t have to pay, or that you get the best deal you can.
To begin, you can get Transworld Systems to stop calling you—at least temporarily—by sending them something called a debt verification letter.
Send a debt verification letter
A debt verification letter is a formal request that obligates a debt collector to provide further evidence of a debt. You must send it within 30 days of them first contacting you. Note that Transworld Systems should have sent you a debt validation letter proving you owe the debt first, as it’s required by law.
Benefits of sending a debt verification letter
Sending a debt verification letter has three benefits:
- You’ll prevent Transworld Systems from calling you during this period: When you send a debt verification letter, third-party debt collection agencies like Transworld Systems are required by law to stop contacting you until they can provide evidence that you actually owe the debt they’re trying to collect. 18
- You’ll get more information about the debt: You should never pay a debt that you don’t recognize. Forcing Transworld Systems to provide documentation will help you determine whether this is a legitimate debt that you actually need to pay. It’s an easy way of figuring out if the debt collector is a scam agency.
- You may successfully disown the debt: If Transworld Systems can’t provide more information about the debt (which is frequently the case), then they have no choice but to delete it from your records.
Beware the statute of limitations
The verification materials that you receive may show that your debt has passed the statute of limitations. This is a legal limit that means the debt is too old for Transworld Systems to sue you over, at which point it’s known as time-barred debt.
If this is the case, you can send Transworld Systems a letter telling them to stop contacting you. Legally, they’ll have to abide by that.
The statute of limitations on most debts is between 3 and 6 years, but the exact amount of time depends on several factors, including the state you live in. The best approach is to check your state attorney general’s website and email their office if the information you’re looking for isn’t available online.
How to remove Transworld Systems from your credit report
If your credit score is suffering as a result of Transworld Systems debt, there are three ways to recover:
1. Dispute the debt with all three credit bureaus
If you think that the debt associated with Transworld Systems on your credit report is illegitimate (e.g., if you paid it on time or it belongs to somebody else), dispute the item on your credit report. You can also dispute debts that are older than 7 years (measured from the date of your first missed payment)—by law, they’re supposed to fall off your credit report by then.
To dispute a debt for free, send a credit dispute letter to the credit bureaus that are showing Transworld Systems on your credit report.
To find out which credit bureaus you need to send the letter to, request your free credit report from each of the major credit bureaus (Experian, Equifax, and TransUnion) at AnnualCreditReport.com. If they don’t respond to your dispute within 30–45 days, then they’re legally obligated to remove the item in question.
2. Negotiate with Transworld Systems
Unfortunately, if the debt is legitimate and it’s less than 7 years old, removing Transworld Systems from your credit report will be very difficult (although not impossible).
Your best move at this point is to simply pay the debt. Newer credit scoring models ignore paid-off collection accounts, which means paying off your collection will boost your credit score even if you can’t remove the item.
However, when you pay, there are two negotiation strategies you can try as a last-ditch attempt to remove Transworld Systems from your credit report:
- Pay for delete: You might be able to convince Transworld Systems to remove the negative mark in exchange for paying off the debt. You can open these negotiations by sending them a pay-for-delete letter.
- Goodwill deletion: This is an alternate strategy you can try after paying your debt. Once the account is paid off, you can send Transworld Systems a goodwill letter asking them to empathize with your situation and remove the mark from your credit report as an act of kindness. Create your letter using our free goodwill letter template.
3. Wait 7 years for Transworld Systems to fall off of your credit report
Unfortunately, most collection accounts will stay on your credit report for 7 years after your first missed payment. Even if you pay off your debt to Transworld Systems, it will remain on your credit report.
Learn more about Transworld Systems’s impact on your credit score:
- How many points will my credit score increase after I pay off collections?
- How to rebuild your credit after having a debt sent to collections
How to deal with Transworld Systems harassment
Unless you tell them not to, Transworld Systems will keep contacting you until you pay off or settle your debt. However, there are restrictions on how they can go about doing this.
Restrictions on Transworld Systems
When attempting to collect payments from you, Transworld Systems must adhere to the regulations specified in the Fair Debt Collection Practices Act. This is a federal law that prevents debt collectors from engaging in harassment or predatory behavior, such as lying to you or calling you incessantly or at unreasonable hours.
Transworld Systems representatives also need to follow the rules set out in the Telephone Consumer Protection Act. It’s a good idea to familiarize yourself with these laws so that you can take action against Transworld Systems if they do something illegal.
Can I sue Transworld Systems for harassment?
Yes, you can sue Transworld Systems for harassment. If you can show that they’ve violated your rights under the Fair Debt Collection Practices Act, then you can collect $1,000 in statutory damages for each violation as well as payment for any damages that you’ve sustained as a result of their violation. Transworld Systems will also have to pay your attorney fees and court costs.
How to file a complaint against Transworld Systems
If a debt collector violates your rights under the Fair Debt Collection Practices Act or does something illegal, then you can report them to the Federal Trade Commission, the Consumer Financial Protection Bureau, or your state attorney general. From there, you’ll be able to find out whether you can also sue Transworld Systems.
Another option is filing a complaint on the Better Business Bureau (BBB) website, but this might not have the outcome you’re hoping for. Bear in mind that the BBB is actually a private organization that has no affiliation with the US government. They’ll forward your complaint to Transworld Systems, but there’s no guarantee that the agency will address it in a satisfactory manner. What’s more, if your dispute is sent to an arbitrator, then you may give up your right to take Transworld Systems to court.
Should you pay Transworld Systems?
You should only pay a collection agency like Transworld Systems if you’re certain the debt is yours and you owe it. If you’re struggling financially and can’t afford to pay this debt collector, you can get help from a non-profit credit counselor.
