What Is Transworld Systems and Why Is It on My Credit Report?

Jaron Pak
A person throws a hand up in frustration while looking at financial documents.
Reading Time: 4 minutes

If you’ve found “transworld systems” or a similar mark on your credit report, you may be wondering what it is. This comes from the credit collection agency Transworld Systems.

Transworld Systems is a legitimate debt collection company with decades of experience serving tens of thousands of customers. They function as a third-party collection agency (i.e. they collect debts for other individuals and companies.)

Transworld Systems has a 1.21 rating out of five stars on the Better Business Bureau website.

If you have a claim by a collection agency on your credit report, it’s important to stay calm. While you do want to address the situation as soon as possible, you must do so in the right way.

Below are several steps that you should take. These should be done in the order presented so that you can verify and address the existing claim with minimal impact on your credit score.

What to Do if You See Transworld Systems on Your Credit Report

If you find Transworld Systems on your credit report, the one thing that you don’t want to do is leave the claim to fester. Even if the company is claiming a debt that you don’t owe, leaving a claim on your report can have many negative side effects.

If left to linger, the claim will likely lead to more calls and other efforts from Transworld Systems to collect the owed or perceived debt. You may also have property repossessed and you will certainly have a significantly damaged credit score.

Instead of ignoring the claim, take steps to address the issue. This should start with the following:

Verify That It Is Legitimate

You may feel the need to pay off a collection claim as soon as you notice it. However, the first thing you should do before any money changes hands is verify that the claim is legitimate.

Some claims can appear on your report due to identity theft or even an error on the part of the collection agency. Even if you know that you owe money, verification is still a crucial part of the process.

If Transworld Systems has claimed you owe a debt, you should send them a debt verification letter. This ensures that the claim, the amount owed, and every other detail is correct.

Pay It Off

If you find that the debt being claimed is, indeed, legitimate, the next step is to pay it off. This may seem difficult, but it’s important that you do everything in your power to pay back the debt one way or another. Fortunately, there are many methods, such as the snowball method, that you can use to progressively pay the debt off over time.

You may also want to talk with Transworld Systems directly. Often by speaking with the collection agency, you may be able to spread out payments or even reduce the total amount owed. The simple fact that you’re communicating and willing to find a solution will encourage the agency to also do their best to find an amicable solution.

Speak With a Credit Counselor

Before moving on to address the collection claim itself, there’s one more step to consider. You may be a model of financial virtue who happened to make a single monetary mistake.

However, chances are, if you have a legitimate collection agency claim on your credit report, there are a few areas of your financial activity that may need to be improved.

If that’s the case, consider speaking with a credit counselor. By going to a professional, you can identify weak points in your financial behavior. This can help you develop healthy financial habits and avoid a similar situation in the future.

How to Remove Transworld Systems From Your Credit Report

Once you’ve verified the collection claim, you need to take further steps to remove it from your report. You can try to resolve the issue on your own or you can invest in a good credit repair company to get professional help. In either case, the steps you need to take differ depending on the situation.

On the one hand, if you found out that the claim was incorrect, all you need to do is send a dispute letter. This should be done for each of the three major credit bureaus. Note that you are not sending the letter to the collection agency. Instead, you’re directly alerting the credit bureaus that an erroneous derogatory mark is on your account.

On the other hand, if the claim is legitimate, then you need to take a few extra steps to deal with the issue. First, you absolutely must resolve the debt itself.

Once that’s been paid off, you can draft a goodwill letter to the original lender. Here, note that you’re writing to the original company or individual from whom you borrowed funds. This letter should:

  • Point out that you’ve repaid the debt.
  • Explain your reasoning for failing to pay the money back in the first place.
  • Highlight your otherwise good credit history.

A goodwill letter is not a surefire resolution to the derogatory mark. In essence, you’re explaining yourself to the lender and asking them to forgive your failure to initially come through on the debt. If it works, they will remove the mark proactively.

Will Transworld Systems Sue Me?

If you’re worried about being sued by Transworld Systems over an overdue debt, chances are you can breathe easy. While it’s certainly possible that you can be sued by a collection agency, this rarely happens. Unless you owe an astronomical amount of money, chances are the company won’t take steps to take the issue to court.

However, the mark on your credit record will continue to persist for up to seven years. Rather than fretting about a possible lawsuit, focus on verifying and resolving the debt to minimize the long-term effect that it could have on your financial health.


Image Source: https://depositphotos.com/

 

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