Jackson et al. v. Transworld Systems, Inc. et al.
- Date Filed
- August 20, 2017
- Docket Number
A multi-layered proposed class action filed on August 20 claims Transworld Systems, Inc. and law firms Shermeta Law Group PLLC and Weltman, Weinberg & Reis C., LPA illegally file lawsuits against Michigan consumers over defaulted student loan debts despite not having proper ownership or chain of title of ownership of the obligations. The 38-page lawsuit cites alleged violations of the Fair Debt Collection Practices Act (FDCPA), as well as the Regulation of Collection Practices Act and the Michigan Occupation Code.
Citing this New York Times piece, the complaint claims Transworld Systems unlawfully engages in the practice of attempting to collect on defaulted student loans by filing lawsuits against proposed class members despite the absence of any standing or “minimum proof necessary” for a case to even go to trial. The other two defendants, as agents for Transworld Systems, are allegedly directed by the company to pursue Michigan consumers in what the suit calls a “state-wide scheme” to eliminate the “burden” aspect of “burden of proof” by deceiving Michigan residents into paying or settling defaulted private student loans.