Ignoring a debt collector like Transworld Systems Inc. (TSI) might feel like the easiest way to make the calls and letters stop, but in reality, it only makes things worse.
From relentless harassment to lawsuits and even wage garnishment, avoiding debt collectors creates a snowball effect that damages your credit and your peace of mind.
Remember that Ignoring debt collectors creates escalating consequences. Each stage brings worse outcomes.
What Happens If I Ignore TSI Collections
Here’s what really happens when you ignore TSI collections, going through each stages:
Stage 1: Increased Harassment (Weeks 1-4)
TSI intensifies contact efforts immediately:
Call Volume Increases: From 2-3 calls per day to 8-10 calls per day. They use multiple phone numbers to get around your call blocking.
Time of Day Expands: Early morning calls at 8:01 AM. Late evening calls at 8:59 PM. They work within legal limits but push boundaries.
Multiple Numbers: They call your cell, home, work, and any other number they find. Each attempt comes from a different number.
Voicemail Box Fills: They leave 15-20 voicemails per week. Some are automated, others are agents demanding callback.
Text Messages: Automated texts with account numbers and payment demands. These texts include links to payment portals.
This chart visualizes the intensification of contact efforts during Stage 1 (Weeks 1-4). It compares the Initial low-level contact (represented by the gray bars) to the Stage 1 high-intensity harassment (represented by the red bars) for call and voicemail frequency.
Stage 2: Third-Party Contact (Weeks 4-8)
TSI expands their search for you:
Skip Tracing Intensifies: They purchase updated contact information from data brokers. This includes relatives, neighbors, employers, and social media connections.
Relative Calls: Your parents, siblings, or adult children receive calls asking for your contact information. TSI claims they need to reach you for an "important personal matter."
Employer Contact: While illegal to discuss your debt, collectors call your workplace asking for you. They often use vague language to avoid FDCPA violations.
Neighbor Inquiries: In extreme cases, TSI contacts neighbors asking about your whereabouts.
Stage 3: Credit Reporting Damage (Months 2-3)
Negative information like past-due debts generally stays on credit reports for seven years.
TSI reports the debt to all three credit bureaus:
Credit Score Drop: Expect a 50 to 150 point decrease depending on your starting score. The higher your initial score, the bigger the drop.
Multiple Account Reporting: If TSI bought the debt, both the original creditor charge-off AND the TSI collection account appear on your report. This doubles the damage.
Continuing Updates: TSI reports the account as delinquent every 30 days. Each update reinforces the negative information.
Loan Denials: Credit card applications get rejected. Auto loan rates increase by 3-5%. Mortgage approval becomes difficult or impossible.
Non-Credit Consequences:
- Apartment rental applications denied
- Utility deposits required
- Cell phone service requires prepayment
- Insurance rates increase
- Some employers check credit for hiring decisions
Below is a line graph showing "Credit Score Impact Over Time" with starting score at 720, dropping to 620 at 3 months, then gradual recovery over 24 months to 680.
This line graph visualizes the projected Credit Score Impact Over Time resulting from the negative credit reporting action in Stage 3.
The graph shows the immediate and prolonged damage caused by the reported delinquent account, followed by a slow, partial recovery.
Credit Score Impact Over Time (Post-Credit Reporting)
The negative information, including the original charge-off and the new TSI collection account, will remain on the report for seven years, keeping the score suppressed despite the minor recovery shown. This lower score leads directly to the consequences mentioned, such as higher interest rates on loans and difficulty with rental or utility applications.
Stage 4: Legal Action (Months 3-12)
You have up to 35 days to respond to a lawsuit against Transworld Systems, depending on where you live. If you don't file an Answer within the deadline, you will lose by default judgment.
TSI files a lawsuit in civil court:
Summons and Complaint: You receive court papers via process server or certified mail. The documents detail the amount TSI claims you owe, the original creditor, and the court date.
Default Judgment: Most consumers ignore the lawsuit or miss the response deadline. The judge rules in TSI's favor automatically. Default judgment rates exceed 90% in debt collection cases.
Judgment Powers: Once TSI has a judgment, they gain legal powers to collect:
Wage Garnishment: TSI sends paperwork to your employer. The company must deduct 25% of your disposable income (or the amount above 30 times federal minimum wage, whichever is less) from each paycheck. This continues until the debt is paid in full.
Bank Account Levy: TSI gets a court order to freeze your checking and savings accounts. The bank removes funds to satisfy the judgment. You wake up to a zero balance and bounced checks.
Property Liens: TSI places liens on your home, car, or other property. You cannot sell or refinance without paying the judgment. Liens remain in effect for 10-20 years depending on state law.
Judgment Interest: Courts add interest to the original debt. Rates range from 3% to 12% annually depending on state law. A $5,000 debt becomes $8,000 after five years.
Judgments awarded in Texas to a non-government creditor are generally valid for ten years but can be renewed for longer. If a judgment is not renewed, it will become dormant.
Stage 5: Asset Seizure (Months 12+)
TSI uses judgment powers to take assets:
Sheriff Sale: TSI requests the sheriff to seize and auction your property. Vehicles, electronics, jewelry, and other valuables get sold at public auction. Proceeds pay the judgment.
Real Estate Foreclosure: If the judgment is large enough and you own property, TSI can force the sale of your home. This happens rarely but remains legally possible.
Professional License Impact: Some states allow judgment creditors to suspend professional licenses (medical, legal, real estate) until debts are paid.
Psychological and Life Impact
Beyond financial consequences, ignoring TSI creates severe stress:
Mental Health Decline:
- Constant anxiety about the next call
- Depression from financial pressure
- Sleep disruption from morning calls
- Panic attacks when the phone rings
- Relationship strain from financial stress
Life Disruption:
- Missing work to deal with garnishment
- Avoiding answering phone calls from anyone
- Moving to escape collection attempts
- Changing phone numbers repeatedly
- Hiding income in cash to avoid garnishment
Your Rights Under the Fair Debt Collection Practices Act
The Fair Debt Collection Practices Act (FDCPA) is federal law protecting consumers from abusive debt collection practices. TSI must follow these rules or face penalties up to $1,000 per violation plus attorney fees.
Communication Restrictions
Time Limits: TSI cannot call before 8 AM or after 9 PM in your time zone.
Workplace Calls: If you tell TSI (verbally or in writing) that your employer prohibits personal calls, they must stop calling your workplace.
Third-Party Contact: TSI cannot discuss your debt with anyone except:
- You
- Your attorney
- Your spouse
- The original creditor
- Their attorney
- Credit reporting agencies
They can contact others ONLY to locate you. They must identify themselves but cannot mention the debt.
Frequency Limits: While the FDCPA does not specify exact call limits, courts have ruled that excessive calls constitute harassment. Calling 8+ times per day typically violates the law.
Prohibited Practices
TSI cannot:
Threats and Intimidation:
- Threaten violence or physical harm
- Threaten arrest or criminal prosecution
- Threaten actions they do not intend to take
- Threaten actions they cannot legally take
- Use profane or obscene language
False Statements:
- Claim to be attorneys or law enforcement
- Misrepresent the debt amount
- Claim you committed a crime
- Threaten to seize property without legal process
- Say they will garnish wages without a judgment
- Claim legal action will happen immediately
Unfair Practices:
- Add fees or interest not authorized by contract
- Accept post-dated checks then deposit early
- Contact you via postcard (visible to others)
- Use deceptive company names
- Continue collection after you dispute the debt (until validation provided)
Your Affirmative Rights
Debt Validation: Within 30 days of first contact, you have the right to request written validation proving:
- You owe the debt
- The amount is accurate
- TSI has authority to collect
- Original creditor information
- Account history and charges
TSI must stop collection activity until they provide this validation.
Dispute Rights: You have the right to dispute any debt you believe is incorrect, not yours, or already paid. Your dispute must be in writing. TSI must investigate and provide proof.
Cease Communication: You have the right to tell TSI to stop contacting you completely. Send a written cease communication letter via certified mail. TSI must stop all contact except to notify you of specific actions (lawsuit filed, collection withdrawn).
Legal Representation: Once you tell TSI you have an attorney, they must contact the attorney only. They cannot continue calling you.
Sue for Violations: If TSI violates the FDCPA, you can sue them in federal or state court within one year. You can recover:
- Actual damages (financial losses)
- Statutory damages up to $1,000
- Attorney fees and costs
State-Specific Additional Protections
Many states provide stronger protections than federal law:
California: Rosenthal Fair Debt Collection Practices Act extends FDCPA protections to original creditors. Collectors cannot contact you at work AT ALL, even without employer prohibition.
Florida: Florida Consumer Collection Practices Act requires collectors to send written notice within 5 days of first contact. They cannot simulate legal process in communications.
New York: Collectors must be licensed. They cannot contact you more than twice per week by phone or attempt contact on more than 2 days per week at your residence.
Texas: Debt collectors must provide specific disclosures in the first written communication. They face additional penalties for violations.
Check your state Attorney General website for specific state protections.
Final Thoughts About Ignoring TSI Collections
Ignoring TSI collections creates long-term problems. Calls increase, credit scores drop, and lawsuits follow.
You protect yourself by acting early. Pull your credit reports. Dispute errors. Keep written records. Respond to letters.
If TSI takes you to court, file an Answer before the deadline. This stops a default judgment.
Know your rights under the FDCPA. Collectors cannot harass you, call outside allowed hours, or misrepresent the debt.
Your best move is to stay proactive. Take control before the debt collector takes control of your money and your credit.