Lawsuit: Transworld Systems Falsely Threatened Consumer with Debt Balance Increases

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A proposed class action has been filed against Transworld Systems Inc. alleging the debt collector falsely informed a consumer that his purported debt may increase. The man claims he received a collection letter from the company that listed his “current balance due” and indicated that the amount “may be periodically increased due to the addition of accrued interest or other charges.” The lawsuit argues that this statement is false and that the defendant was not authorized to “impose additional charges” on the plaintiff. The purpose of the defendant’s statements, the case alleges, was to provide a false “financial incentive” that would encourage the plaintiff to pay off his debt sooner and avoid paying a greater amount.