Transworld Systems Inc. Debt Collection Complaint

Transworld Systems Inc. Debt collection department,

Federal student loan False statements or representation Attempted to collect wrong amount Virginia

I set up a payment plan with Transworld Systems which included a monthly payment amount of $65.00. The agreement was signed by me on -/-/15. The letter stated the following : On -/-/2015, you agreed to enter into a Loan Rehabilitation Agreement ( Agreement ) with - ( - ). Once your loan ( s ) is/are rehabilitated : Your loan ( s ) will be removed from default. Within forty-five ( 45 ) days of rehabilitation, - will request all nationwide consumer reporting agencies to which the defaultwas reported to remove the record of default from your credit history, and provide notice of the rehabilitation to the prior holder. You will regain eligibility for remaining deferments, forbearances and other Title IV financial aid.


This means that if your loan ( s ) is/are rehabilitated, there is apossibility that the required monthly payment amount will increase. The payments were automatically debited from my account for 6 consecutive months. I contacted Transworld -/-/- to inquire about the payments stopping -/-/- ( when I noticed ). They could n't give me a definite answer and wanted be to restart the paperwork all over again. When I continued to insist on a more definite answere, I was told that they could not retrieve the payments from my checking account due to insufficient funds. That statement was completely false and a dishonest practice on their part. I was never contacted by the company about my payments after -/-/- and my account has always had the funds available to make the monthly payment arrangement. To insist that I restart the paperwork all over again after only 6 months on the plan is completely unacceptable and disturbing. At the time I signed the agreement, I was told by Transworld that I would rehabilitate my loan after making 9 voluntary on time payments. I thought this was reputable company until this situation happened.