Class Action Claims Transworld Systems Sent Misleading Collection Letter

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Transworld Systems Inc. is on the receiving end of a proposed class action that takes issue with an allegedly misleading collection letter. The plaintiff in the case claims she received four collection letters from the defendant between March and May 2017 that stated her balance as $851.46. In September of the same year, she allegedly received a fifth collection letter that listed a balance of $862.52 and a slightly different account number from the one identified in previous letters. The suit argues that upon reading the fifth letter, the plaintiff would have no way of knowing what account the defendant was attempting to collect on or why the balance had increased.

Moreover, the fifth letter supposedly contained a payment plan for which the six installment payments did not add up to the total amount due. The letter further warned the plaintiff that the settlement offer “may expire without notice,” which is false and misleading in that it only serves to induce the plaintiff into paying off her balance as soon as possible, the case alleges.