AAFES/Transworld Systems, Inc Fraud

[Woods62010]

In June of 2012, I reached out to AAFES to attempt to pay off a military star card, not knowing it already went to collections. They informed me there is nothing they can do, and that I must contact Transworld Systems, Inc. When I contacted them I had to pay over $2000.00 just to get the payments within my budget. In December of 2014, I received a wage garnishment letter from Transworld. When I called, again they told me I must pay $2000.00 in order to stop the wage garnishment.
I sent a letter requesting the validation of the debt, I know I did not charge over $3000 on the card, the limit was not that high! In Texas, 3rd party debt collectors are required to file a bond with the Secretary of State, this is a free charge. I could not find them in the system, so I also requested that info. Here's what happened:
They filed the bond the day after they received my certified letter.
I received a letter back with the following break-down:
Principal: $1, 317.77
Interest: $672.08
Collection Charge: $528.95
Total Balance: $2, 518.80
The original letter I received in December states that I owed: $3, 329.32
What does this mean:
1. There is no explanation of why the debt went from $3, 329.32 to $2, 518.80. ($809.52 difference)
2. 15 USC 1692f 808(1), 31 USC 3711g (6), and Texas Finance Code Ch 392 Sec. 303 all state that they cannot legally charge the $528.95 collection charge.
3. Now with the balance of $1, 3717.77+672.08(interest)=$1, 989.85, less than what they wanted lump sum to start a payment arrangement.

So... they attempted to collect a total of $1, 338.47 illegally from us. If they attempted to do this to us, how many other veterans were taken advantage of? If they did this to 10, 000 veterans, that is $13, 384, 700 they illegally profited off of.

I am reaching out to other vets that have been contacted by this company. I want to put together an investigation in regards to ending this contract and getting you your money back!!! We all work too hard to have it stolen from us!!!

If you were contacted by this company, email here or at my personal email: Ashley.woods.6205@gmail.com - do not send attachments now.

Tags: AAFES, Wage Garnishment, Tax, Transworld Systems, Inc

[lbenn750]

I think they are trying to get me too. I paid my debt thru garnishment of my military pay and once my balance hit zero, they sent a letter saying I owe an additional 1K plus ... oh my! I guess calling AAFES is useless. I will give it a try anyways.

[lbenn750]

Called AAFES and they said they took the debt back from Transworld once they started taking money from my military pay. Just sent them a validation letter. I will be waiting on their response as I am sure they will not be able to validate the debt since it's already paid in full to AAFES and AAFES took the account back from them. Not sure what they were thinking ...

[ICANHASMUNY?]

In June of 2012, I reached out to AAFES to attempt to pay off a military star card, not knowing it already went to collections. They informed me there is nothing they can do, and that I must contact Transworld Systems, Inc. When I contacted them I had to pay over $2000.00 just to get the payments within my budget. In December of 2014, I received a wage garnishment letter from Transworld. When I called, again they told me I must pay $2000.00 in order to stop the wage garnishment.

I sent a letter requesting the validation of the debt, I know I did not charge over $3000 on the card, the limit was not that high! In Texas, 3rd party debt collectors are required to file a bond with the Secretary of State, this is a free charge. I could not find them in the system, so I also requested that info. Here's what happened:

They filed the bond the day after they received my certified letter.

I received a letter back with the following break-down:

Principal: $1, 317.77

Interest: $672.08

Collection Charge: $528.95

Total Balance: $2, 518.80

The original letter I received in December states that I owed: $3, 329.32

What does this mean:

1. There is no explanation of why the debt went from $3, 329.32 to $2, 518.80. ($809.52 difference)

2. 15 USC 1692f 808(1), 31 USC 3711g (6), and Texas Finance Code Ch 392 Sec. 303 all state that they cannot legally charge the $528.95 collection charge.

3. Now with the balance of $1, 3717.77+672.08(interest)=$1, 989.85, less than what they wanted lump sum to start a payment arrangement.

 

So... they attempted to collect a total of $1, 338.47 illegally from us. If they attempted to do this to us, how many other veterans were taken advantage of? If they did this to 10, 000 veterans, that is $13, 384, 700 they illegally profited off of.

 

I am reaching out to other vets that have been contacted by this company. I want to put together an investigation in regards to ending this contract and getting you your money back!!! We all work too hard to have it stolen from us!!!

 

If you were contacted by this company, email here or at my personal email: Ashley.woods.6205@gmail.com - do not send attachments now.

 

Tags: AAFES, Wage Garnishment, Tax, Transworld Systems, Inc

 

That is misrepresentation, and a violation of the FDCPA and TX laws.

 

find an attorney and sue the CA. - 1 year SOL on FDCPA claims, doesn't matter that the debt was recalled .

[adriennemcglone]

I live in Massachusetts. I am not sure what the laws are in Massachusetts regarding this matter. Nevertheless, I will be requesting a validation letter from TSI, today. I will keep you posted.

Thanks,

Adrienne

[wim]

Before I filed BK AAFES was jacking my tax refund every year through the treasury offset program. I had defaulted maybe 6 years ealier after maxing out my credit, which was about 7k at the time. After 2 years of losing my tax refunds I just changed my witholding so I didn't get a refund at the end of the year. Eventually I wanted to figure my life out so I tried calling AAFES to find out my balance and see how much more I owed them and they told me I needed to contact Transworld. Transworld told me my balance was like 12k and I was accruing about $150 a month in interest. They wanted me to setup payment arrangements I declined and went to talk to a BK attorney a week later.

 

It's ridiculous how a 7k debt nearly doubled in 6 years even after taking my 2-3k in tax refunds for 2 years.

[BlackRaven]

OMG! I'm so glad I found this... like wim, they have been taking my returns for the past several years too, so this balance is ridiculous. I didn't know where to start. I still don't know where to start, but it will begin with a request for validation.

[BlackRaven]

They've been garnishing wages as a "student" loan to circumvent Texas law. I'm calling my HR office today, and then an attorney if I can't get assistance. They also failed to send a signed debt validation with proof of the debt owed.

[tireredsquare]

I dont have anything to add but

 

 

I am sooo glad I never got a star card. I try to steer new Soldiers away from star cards as I am still on active duty.

[BlackRaven]

UPDATE:

 

They started garnishing, but I spoke to someone 1 month into garnishment and they now automatically deduct a specific amount each month from my banking account. I had to pay them a small amount upfront to get started, but it's made the situation more manageable for me. I have about $2200-$2300 left on the bill, so I hope to have that taken care of in the next few months if possible.

[breeze]

Sure sounds like a rogue agency.

[Felicity3912]

I just got a letter out of the blue saying I owe over 12k. I know I paid that off but it's been over 10yrs so I don't have anything.

[AlfA01]

I have a similar problem as the OP.  I will open a new thread and state my experience in there.  

 

In short: Trans World is collecting garnishments from my SSA Disability, but the DOT statement says it goes directly to AAFES.  

 

My original debt was approx $8K and after 4+-years of garnishments I owe more than the original amount.  

[Kat58]

9 hours ago, AlfA01 said:

I have a similar problem as the OP.  I will open a new thread and state my experience in there.  

 

In short: Trans World is collecting garnishments from my SSA Disability, but the DOT statement says it goes directly to AAFES.  

 

My original debt was approx $8K and after 4+-years of garnishments I owe more than the original amount.  

Welcome to CB! Looking forward to your upcoming thread 

 

[PotO]

I've seen cases like this hundreds of times.

 

An easy way to solve this problem would be for AAFES to discontinue their relationship with Trans World.  

[Regina]

Wage Garnishment,

TSI is garnishing my wages after I tried to get a settlement with them and the say I owe over $20,244 plus dollars and that interest still will accrue. Also they took my income taxes. I need advice, I am looking to file a bankruptcy to be done with this, the are not corruptive at all and The Exchange (AFFES) is not better. They do not want to take a settlement I really see no other option put to file Bankruptcy. This has really become mentally stressful and I have tried to work this out to no avail. 

I will greatly appreciate any information you maybe able to provided. Thanks is advance for your time and attention to this matter. 

 

Respectfully, 

Regina 

[hegemony]

21 hours ago, Regina said:

Wage Garnishment,

TSI is garnishing my wages after I tried to get a settlement with them and the say I owe over $20,244 plus dollars and that interest still will accrue. Also they took my income taxes. I need advice, I am looking to file a bankruptcy to be done with this, the are not corruptive at all and The Exchange (AFFES) is not better. They do not want to take a settlement I really see no other option put to file Bankruptcy. This has really become mentally stressful and I have tried to work this out to no avail. 

I will greatly appreciate any information you maybe able to provided. Thanks is advance for your time and attention to this matter. 

 

Respectfully, 

Regina 

welcome to CB!

 

I suggest you start a new thread with more details on your situation.

 

as an aside, see if you can adjust your W-4 to avoid a tax refund in the future.