Lawsuit: Transworld Systems Falsely Implied Woman’s Insurance Company Refused Claim

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Transworld Systems, Inc. is on the receiving end of a proposed class action that claims the debt collector implied a consumer’s insurance company would not cover her purported medical debt without providing any basis for this determination.

According to the complaint, the plaintiff received a collection letter from the defendant regarding a medical debt supposedly owed to Oleta River ER Physicians LLC. The woman claims that while she did visit the facility, the debt was not valid and that she never would have agreed to pay fees not entirely covered by her insurance. The letter, the lawsuit suggests, misrepresented that the woman’s insurance company had processed her claim and was refusing the cover the debt when, in truth, the defendant had “no factual basis with which to make such representation.”

"The alleged debt was non-existent," the suit reads.

The case argues that the letter misled the plaintiff into thinking she could not resolve the issue with her insurance company or medical provider and that she unquestionably owed the debt when this may not have been the case.

“This language is inherently misleading and deceptive, because it was made without any individual or actual knowledge of whether it was true or false,” the complaint reads, adding that the defendant’s alleged conduct potentially violated the Fair Debt Collection Practices Act (FDCPA).

“Debt collectors who convey literal truths, partial truths, or ambiguous statements to consumers are still in violation of the FDCPA if they are misleading. Under [the FDCPA], a debt collector's statement must not only be true, it must also avoid ambiguity and unnecessary bullying or intimidation.”