Transworld Systems Faces FDCPA Suit Over ‘Misleading’ Collection Letters

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Transworld Systems, Inc. is the defendant in a proposed class action lawsuit that claims its collection letters fail to clearly communicate the amount of consumers’ alleged debts, in violation of the Fair Debt Collection Practices Act. The letters supposedly inform the recipients that their balances “may be periodically increased due to the addition of accrued interest or other charges.” The suit argues that the defendant fails to mention any additional details regarding interest or fees – such as interest rates and the nature of the fees – and hinders consumers from being able to determine the true amount of their balances.