TransWorld Systems Named in Debt Collection Class Action

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From Wisconsin district court comes a proposed class action claiming TransWorld Systems, Inc. violated the Fair Debt Collection Practices Act (FDCPA) when it included in a collection letter “inherently misleading” language stating an inquiry was made on the plaintiff’s credit report. According to the complaint, the defendant’s language could be considered deceptive to the unsophisticated consumer (i.e. the figurative benchmark used by courts in debt collection lawsuits) because he or should could interpret the statement as meaning that TransWorld was “taking an action to harm [the plaintiff’s] creditworthiness.” Even if an inquiry into the plaintiff’s credit report was truly made, the suit continues, it would have no negative effect on his creditworthiness or FICO score.

Further, the plaintiff claims the defendant failed to clearly and unambiguously state his due balance, a step that could lead the unsophisticated consumer to believe the balance listed is not the actual amount owed.