Urgently Needing Help Suspicious Account Handling by TSI – Immediate Late Mark on New Account

[Langoo]

Hi everyone,

I’m hoping to get some insight or advice on a strange situation I’m dealing with.

TSI recently closed one of my accounts without any warning or explanation. The account had no history of late payments and was in good standing. Almost immediately after the closure, they opened a new account and reported it to Experian as late on the very same day it was created.

I am concerned that if I start a dispute Experian will treat the new account in isolation, without connecting it to the original account that was closed. This feels questionable especially considering how fast the closure and late reporting happened. There was no opportunity for me to act or even be notified before the damage was done.

Has anyone dealt with something similar? Do credit bureaus like Experian consider the full context in these situations, or do they typically just go by what’s in front of them? I’m concerned that this might be hurting my report unfairly, especially given the clean history on the original account. I have a bank statement showing payment to TSI.  A year worth of bank statements showing on time payments.

For context, my account with TSI was in good standing with autopay. On March 3rd, 2025 I paid my montly payment. March 6th, 2025 TSI randomly closed the account and opened a new one a reported it to Experian. 

[pizzadude]

Did you talk with TSI and what did they tell you ?   Also is this a credit card account or a loan account ?

[Langoo]

I recorded my conversation with them, including a discussion with their lead. They initially said they couldn’t find my old account and claimed I’d never made any payments on the “new” one. Technically, that’s true  but completely misleading. I’ve been making regular payments toward this utility debt for over a year.

According to the lead, the electric company supposedly told them to close the old account and open a new one. That made no sense to me, so I called the electric company directly. They told me they never issued any such instruction. So either someone is seriously mistaken, or something else is going on.

When I confronted them about this negligence how they seemingly voided our payment arrangement without notice their response was basically: “You can pay to delete if you want.” Um What?! I was on a payment plan. I stuck to it. I did nothing wrong. We had an agreement, and they broke it without explanation.

Now I’m left trying to clean up the damage. If I dispute this with Experian and submit bank statements showing my consistent auto-payments, will they take the full context into account? Or will they ignore the history tied to the old account and deny the dispute on a technicality?

I’m confused, frustrated, and frankly, I feel taken advantage of. How do I navigate this mess?

[FicoMike0]

So, tci is a collection agency. 

Is the balance on the new account the same as the previous account? Do they show the old account paid?

[Langoo]

So, TSI- Transworld Systems Inc. is the collection agency handling this on behalf of my electric company. The balance on the “new” account is basically just what’s left after a year of steady payments. I’ve been making on-time auto-payments every month, without fail. Then suddenly without warning they closed the old account, shifted the remaining balance to a new one, and reported me as late to Experian three days after my latest payment went through.

I don’t even know if they marked the old account as paid. That’s something I still need to ask. But from my end, it looks like they just moved the balance, ignored the payment plan I was actively on, and punished me for their own accounting change.

They changed the terms without notice, tanked my credit. 

If I provide my bank records showing the consistent auto-payments, will Experian look at the full context or just treat this as a new account with no payment history and deny the dispute?

[pizzadude]

Moved to Rebuilding Your Credit

[JoeRockhead]

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@Langoo wrote:

So, TSI- Transworld Systems Inc. is the collection agency handling this on behalf of my electric company. The balance on the “new” account is basically just what’s left after a year of steady payments. I’ve been making on-time auto-payments every month, without fail. Then suddenly without warning they closed the old account, shifted the remaining balance to a new one, and reported me as late to Experian three days after my latest payment went through.

I don’t even know if they marked the old account as paid. That’s something I still need to ask. But from my end, it looks like they just moved the balance, ignored the payment plan I was actively on, and punished me for their own accounting change.

They changed the terms without notice, tanked my credit. 

If I provide my bank records showing the consistent auto-payments, will Experian look at the full context or just treat this as a new account with no payment history and deny the dispute?

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There's a lot going on here.  If TSI was merely acting on behalf of the utility company on the original account, but subsequently purchased the debt from the utility company, that would explain the closing of the first (collection) account and opening a new one.  If that was the case, your reports should currently show the original account (utility company) with a zero balance, and a (new) collection account with the remaining balance.  This would be correct reporting, and unfortunately, would also ding your scores being it shows up as a fresh collection account.

In most cases a creditor can't unilaterally change a payment agreement without proper notice... unless there was language in the agreement that allowed them to do so, or the agreement became null and void once the account is closed.    

The reporting of the new collection account being late, according to your evidence, isn't correct.  Regardless of whether or not you are able to get verification from either of these two businesses as to who currently owns the account, I'd strongly suggest you contact a local consumer debt attorney to possibly send TSI a formal letter seeking an immediate remedy to their incorrect reporting and the situation as a whole. 

I could certainly be wrong but I just don't think a run of the mill dispute with EX is going to accomplish anything based on what you've stated about the conversations you've already had with TSI and the utility company. 

[Seatac]

IMO your plan should include immediately,  meaning today, go to 

https://www.annualcreditreport.com

And get one or more of your credit reports.

Look in the adverse accounts section for the collection account history. 

It should show the old account and the new account if it has reported. Be aware If you have waited to long TSI may have ordered the original account deleted.

With those pages and your bank statements,  hand write your account challenge to all 3 CRAs.  Send Return Receipt. 

DO NOT USE THE ONLINE DISPUTE SYSTEM.

hand writing and sending by mail forces human hands and eyes on your dispute not just automated responses.

Then take that stuff, including proof of receipt and start looking for a lawyer. 

If what you report here is 100 accurate and the CRAs and TSI don't fix the reporting then you might have a great case to sue them. 

Is TSI the owner of the debt? Just A hired debt collection company?

When you pull the credit report see if the original creditor is showing. 

[Langoo]

I haven't dealt with a credit lawyer. How do I search for a lawyer? Just google credit lawyer?

[Seatac]

I would call my state bar association and ask for referrals of debt lawyers

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@Langoo wrote:

I haven't dealt with a credit lawyer. How do I search for a lawyer? Just google credit lawyer?

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