breturbo Posted January 3, 2020 Report Share Posted January 3, 2020 Hi all, I have searched everywhere and cannot seem to find a suitable answer. There is a debt on my credit report that was defaulted on back in 2014, the creditor had the account listed as a charge off and over the past few years they changed that status from Charge off to Closed and no are trying to collect on said debt. Along with this the collections account is now accruing interest along with the original debt and has more than doubled from the original charge off amount. The creditor is using an internal collections agency apparently which is Transworld Systems Inc. Is it legal to do this? Also I do not show Transworld Systems Inc registered in Texas with a bond to collect? I am based in Texas and wondering if this is legal for them to do? Quote Link to comment Share on other sites More sharing options...
LaneBlane Posted January 3, 2020 Report Share Posted January 3, 2020 2 minutes ago, breturbo said: Hi all, I have searched everywhere and cannot seem to find a suitable answer. There is a debt on my credit report that was defaulted on back in 2014, the creditor had the account listed as a charge off and over the past few years they changed that status from Charge off to Closed and no are trying to collect on said debt. Along with this the collections account is now accruing interest along with the original debt and has more than doubled from the original charge off amount. The creditor is using an internal collections agency apparently which is Transworld Systems Inc. Is it legal to do this? Also I do not show Transworld Systems Inc registered in Texas with a bond to collect? I am based in Texas and wondering if this is legal for them to do? The statute of limitations for the collection of debts in Texas is four years. If the default occurred in 2014, your comfortably past this. Credit items can remain on your credit report for a period of seven years. Quote Link to comment Share on other sites More sharing options...
BV80 Posted January 3, 2020 Report Share Posted January 3, 2020 23 minutes ago, breturbo said: Hi all, I have searched everywhere and cannot seem to find a suitable answer. There is a debt on my credit report that was defaulted on back in 2014, the creditor had the account listed as a charge off and over the past few years they changed that status from Charge off to Closed and no are trying to collect on said debt. Along with this the collections account is now accruing interest along with the original debt and has more than doubled from the original charge off amount. The creditor is using an internal collections agency apparently which is Transworld Systems Inc. Is it legal to do this? Also I do not show Transworld Systems Inc registered in Texas with a bond to collect? I am based in Texas and wondering if this is legal for them to do? Are they contacting you or just reporting on your credit report? Quote Link to comment Share on other sites More sharing options...
breturbo Posted January 4, 2020 Author Report Share Posted January 4, 2020 5 hours ago, BV80 said: Are they contacting you or just reporting on your credit report? They are doing both. They changed my report from a charge off to now showing closed in collections. I have about 50 different number that I have blocked and tons of voice mails that are automated from them. Quote Link to comment Share on other sites More sharing options...
BV80 Posted January 4, 2020 Report Share Posted January 4, 2020 4 minutes ago, breturbo said: They are doing both. They changed my report from a charge off to now showing closed in collections. I have about 50 different number that I have blocked and tons of voice mails that are automated from them. Debt collectors are allowed to report. Transworld is bonded in TX. https://direct.sos.state.tx.us/debtcollectors/DCSearch.asp Quote Link to comment Share on other sites More sharing options...
Clydesmom Posted January 4, 2020 Report Share Posted January 4, 2020 6 hours ago, breturbo said: The creditor is using an internal collections agency apparently which is Transworld Systems Inc. Is it legal to do this? Yes. 6 hours ago, breturbo said: I am based in Texas and wondering if this is legal for them to do? They do not have to be registered to report the debt. It no longer matters though since they are registered and bonded in Texas. 6 hours ago, breturbo said: There is a debt on my credit report that was defaulted on back in 2014, the creditor had the account listed as a charge off and over the past few years they changed that status from Charge off to Closed and no are trying to collect on said debt. The SOL to report the debt is 7 years 6 months from the date of default. The SOL to sue you in the courts in Texas is 4 years. They can attempt to collect on the debt forever. All both the SOLs do is limit their methods of collecting. Once the SOL for suit expires if they sue you have an iron clad defense but do have to raise it in your answer or many states deem it waived. Once the SOL for reporting expires the bureaus remove the trade line. Prior to the digital era re-aging of old debts was a problem. These days not so much. Once the SOL(s) expire the only method they can really use to collect is a letter or phone call saying "please wouldn't you like to pay us?" You can then send a FOAD/cease and desist letter. After you do that if they continue collection efforts you have an FDCPA violation and could sue them. Quote Link to comment Share on other sites More sharing options...
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