Class Action Claims Transworld Systems Failed to Disclose Time-Barred Debt Information

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Transworld Systems, Inc. is the defendant in a proposed class action case that claims the company attempted to collect on a time-barred debt.

Alleging violations of the Fair Debt Collection Practices Act (FDCPA), the lawsuit says the plaintiff received a collection notice from Transworld in March 2018 over an obligation reportedly owed to First Bank of Delaware by way of his current creditor, non-party Jefferson Capital Systems. The notice stated a “current balance” of $1,763,54, the case says, but failed to disclose that the plaintiff’s debt is time-barred. If the plaintiff were to submit any payment on the debt, the defendant could then lawfully sue the man, a detail the lawsuit claims was left out of the notice.

“The Collection Letter does not advise [the plaintiff] that Consumer Debt is in fact time-barred or that making a payment towards the Consumer Debt will revive the statute of limitations,” the suit reads. “The Collection Letter does not advise [the plaintiff] that if [the plaintiff] were to agree to any payment arrangements or enter any repayment agreement, the current-creditor or any subsequent owner of the debt could then sue [the plaintiff] for the full amount of the Consumer Debt that was previously time-barred.”