Receiving a letter or call from TSI (Transaction Services Inc.) can be stressful and confusing. As one of the largest debt collection agencies in the United States, TSI contacts millions of consumers each year regarding unpaid debts. Understanding who they are, what they can legally do, and how to respond is crucial for protecting your rights and financial future.

Whether it’s a medical bill, credit card debt, or other obligation, knowing your options helps you respond confidently. Guardian Litigation Group has helped over 55,000 clients nationwide resolve debt collection issues and protect their rights, with more than $600 million in total settlements achieved across 48 states.

Important Disclaimer: Guardian Litigation Group is not affiliated with, endorsed by, or connected to TSI (Transaction Services Inc.) in any way. We are an independent law firm that represents consumers dealing with debt collection matters, including those involving TSI and other major collection agencies. For specific guidance about your situation, please contact our office directly.

Who Is TSI and Why Are They Contacting You?

TSI (Transaction Services Inc.), founded in 1999 and based in Pennsylvania, is a third-party debt collector handling unpaid debts for healthcare providers, utilities, financial institutions, and government agencies. Creditors may hire or sell debts to TSI to recover balances.

TSI operates as both a first-party collector (collecting on behalf of original creditors) and a third-party debt buyer (purchasing charged-off debts and collecting for their own account). The company provides accounts receivable management and debt recovery services across multiple industries, including healthcare providers, financial institutions, telecommunications companies, utilities, government agencies, educational institutions, property management firms, Fortune 100 corporations, and small-to-medium-sized businesses.

Company Size and Global Reach:

• Annual Revenue: Estimated between $500 million to $636 million as of 2025
• Workforce: Approximately 10,000+ employees operating across six continents, including operations in the United States, Canada, Latin America, India, and the Philippines

Recovery Performance and Technology:

• Has recovered more than $6 billion over the past decade for clients
• Manages approximately $8 billion in debt through their extensive Attorney Network of 125+ law firms nationwide

What Types of Debts Does TSI Collect?

TSI handles a wide variety of debt types across multiple industries. Medical debts are among their most common collections, including hospital bills, emergency room charges, and outstanding balances from doctor visits. They also collect utility debts from electric, gas, water, and telecommunications companies.

Additionally, TSI works with financial institutions to recover credit card balances, personal loans, and retail store credit accounts. They also handle government debts, such as unpaid parking tickets, municipal fines, and court fees. Understanding what type of debt they’re claiming you might owe is the first step in determining how you might want to respond with proper debt resolution strategies.

Your Rights Under the FDCPA

The Fair Debt Collection Practices Act (FDCPA) is a federal law that protects consumers from abusive, unfair, or deceptive debt collection practices. Established by Congress and enforced by the Federal Trade Commission and the Consumer Financial Protection Bureau, this law creates clear boundaries for how third-party debt collectors like TSI may interact with consumers.

Under the FDCPA, TSI must follow strict rules when collecting debts. They cannot harass or threaten you, make false claims, call before 8 a.m. or after 9 p.m., contact you at work if prohibited, or misrepresent who they are, what you owe, or the consequences of nonpayment.

Common FDCPA Violations You Should Know

Many consumers don’t realize when a debt collector crosses into illegal conduct. Common FDCPA violations include repeated or harassing calls, false or misleading statements about the debt, empty threats of legal action, and improper contact with third parties or employers.

If you believe TSI has violated your rights, Guardian Litigation Group’s creditor harassment attorneys can help you take action.

State Law Protections: Going Beyond Federal Rules

While the FDCPA provides a federal baseline, most states have their own debt collection laws that expand consumer protections. Many require collectors to be licensed, impose stricter limits on third-party or workplace contact, and offer additional civil remedies for unlawful collection practices.

If TSI violates both federal and state laws, you may have multiple legal options for relief, and state-level damages can sometimes exceed those available under the FDCPA. Working with an attorney who understands both federal and state debt collection laws could help ensure your rights are fully protected and all remedies are pursued.

What Remedies Are Available If TSI Violates Your Rights?

If TSI or another debt collector violates the FDCPA, you have the right to take legal action in state or federal court. You may recover damages for harm caused, and the law allows attorney’s fees and costs to be paid by the collector, so you’re not responsible for legal expenses.

In addition to filing a lawsuit, you can submit complaints to the Consumer Financial Protection Bureau or the Federal Trade Commission, which may lead to investigations and enforcement actions. Many states also offer added protections or remedies beyond federal law to hold collectors accountable for violations.

How to Verify a Debt from TSI

Never assume a debt is valid simply because a collector claims you owe it. Errors are common in the debt collection industry, and you have the legal right to request debt verification. Within 30 days of receiving TSI’s initial written notice, you have the right to request a debt validation letter via certified mail requesting proof that the debt is yours and that TSI has the legal right to collect it.

This information may include details such as the original creditor, account identification, payment history, itemized balances, and licensing status, depending on the circumstances. If sufficient validation is not provided, continued collection activity or reporting of the debt may raise compliance issues under the FDCPA, depending on the facts involved.

Common Defenses Against TSI Collection Lawsuits

Guardian Litigation Group’s 25+ attorneys nationwide are familiar with the various defenses available in debt collection cases. When TSI files a lawsuit, several legal defenses may apply to your situation:

Missing or Inadequate Documentation: TSI must prove they have the right to collect the debt. This requires the original cardmember agreement, complete payment records, and a clear chain of ownership showing the debt was legally transferred to them. Many collection agencies lack this critical documentation.

Statute of Limitations: Every state has time limits for how long a creditor can sue to collect a debt. If the statute has expired, the debt becomes “time-barred” and TSI cannot legally pursue a judgment, even if you still owe the money.

Inaccurate Records: Debt collectors who purchase accounts often receive incomplete or inaccurate credit and billing histories. Errors in the amount owed, payment history, or account details can form the basis of a strong defense.

Identity Theft or Mistaken Identity: If the debt isn’t yours due to identity theft or simple error, you have grounds to dispute the entire collection action.

The presence of experienced legal representation from Guardian Litigation Group puts significant pressure on collectors like TSI to settle faster and on favorable terms for the debtor

 rather than face actual litigation. Creditors actually rely on debtors to not respond to these lawsuits, which unfortunately happens in the majority of cases.

Should You Pay TSI Directly?

Before making any payment to TSI, it is good practice to verify that the debt is legitimate and that you actually owe it. Paying an invalid debt or a debt beyond the statute of limitations can reset the clock on your legal obligations and damage your credit further. Even if the debt is valid, paying the full amount isn’t always your only or best option.

What Happens If You Ignore TSI?

Ignoring debt collection letters and calls from TSI will not make the problem disappear. In fact, it could potentially make your situation significantly worse. If you don’t respond, TSI may escalate their efforts by increasing contact frequency, reporting the debt to credit bureaus (which damages your credit score), or pursuing legal action against you.

If TSI sues, they will most likely file a civil lawsuit seeking a judgment for the debt. If they win, they may try to garnish wages, levy bank accounts, or place liens on property. Responding promptly and strategically is far better than ignoring the lawsuit.

Responding to a TSI Lawsuit

If TSI has filed a lawsuit against you, immediate action is critical. They will typically send summons and complaint that outlines the debt they claim you owe and provides a deadline to file an answer with the court. Failing to respond results in a default judgment, which could mean TSI automatically wins and can begin collection enforcement.

How Guardian’s Debt Resolution Process Works

Unlike many debt settlement companies, Guardian Litigation Group is a law firm with the legal authority to represent you in court if creditors take aggressive action. This distinction is critical—defendants with legal representation in debt collection lawsuits achieve significantly better outcomes. Research from Pew shows that from 2010 to 2019, less than 10% of defendants had legal counsel, yet those who were represented were more likely to win their cases outright or reach favorable settlements.

Guardian’s Strategic Debt Resolution Approach:

Free Debt Analysis: Guardian provides a complimentary assessment of your financial situation to determine which accounts qualify for their program and create a customized strategy.

Monthly Savings Plan: Instead of declaring bankruptcy, you set aside funds monthly into a dedicated, FDIC-insured savings account that you own and control. These savings become the foundation for negotiating lower balances with your creditors.

Active Negotiation: While you save, Guardian’s legal team actively negotiates with TSI and other creditors. They address each debt individually, working systematically to reduce the total amount you owe.

Settlement Approval: Once Guardian reaches a settlement agreement with TSI, a formal offer letter is sent to you for review and approval before any payment is made. You maintain complete control throughout the process.

Resolution Timeline: Most debts are resolved within 48 months, depending on factors such as total debt amount, your ability to save for settlements, and the specific creditors involved.

Guardian has helped over 55,000 clients resolve nearly half a billion dollars in debt. Sometimes they can resolve your debt with a single lump-sum payment; other times, they structure steady payments that systematically bring you closer to financial freedom. Either approach has a significantly less severe impact on your credit than bankruptcy.

Take Control of Your Financial Future Today

Don’t let debt collectors control your life. Contact Guardian Litigation Group today and take the first step toward resolving your debt and protecting your financial future.

To speak with a member of our team, call our general line at (949) 569-9006 or reach our Debtor’s Rights line at (949) 444-5474. Read what our clients have to say about their experiences working with us. Contact Guardian Litigation Group today and take the first step toward resolving your debt and protecting your financial future.

FAQs

Is TSI a Legitimate Debt Collection Agency?

Yes. TSI (Transaction Services Inc.) is a legitimate third-party debt collector founded in 1999 and based in Pennsylvania. With estimated annual revenue between $500-636 million and over 10,000 employees operating across six continents, TSI is one of the largest debt collection agencies in the United States, managing approximately $8 billion in debt.

TSI holds collection licenses in every U.S. state where licensing is required and reports to all three major credit bureaus. They’ve recovered more than $6 billion over the past decade for clients and serve over 60,000 clients ranging from Fortune 100 corporations to local businesses. 

Can TSI Garnish My Wages or Bank Account?

No, not without a court judgment. TSI must sue you, serve you with proper legal notice, and win in court first. This judgment process typically takes 3-6 months from initial lawsuit filing, which is why responding to a lawsuit with legal representation is critical—it can help prevent garnishment entirely or lead to a favorable settlement.

Wage garnishment rules vary significantly by state. In California, for example, TSI must leave you with 75% of your disposable earnings or 40 times the state minimum wage—whichever is greater. Four states prohibit wage garnishment for consumer debt entirely: Texas, Pennsylvania, North Carolina, and South Carolina.

How Long Does a TSI Collection Stay on My Credit Report?

Up to seven years from the original delinquency date—the date when you first missed a payment that led to charge-off, not when TSI purchased the debt. This is a critical distinction that many consumers and even some collectors misunderstand.

If your original creditor was a credit card issuer, hospital, or utility company, this delinquency date should appear on statements issued before the account was charged off or sold. If TSI reports a more recent delinquency date than the original creditor, this violates FCRA rules and can be disputed with the credit bureaus.

Guardian Litigation Group’s debt resolution program can help you negotiate settlements that minimize credit damage while resolving the debt strategically.

What If TSI Calls Me at Work or at the Wrong Time?

Under the Fair Debt Collection Practices Act (FDCPA), collectors cannot call before 8 a.m. or after 9 p.m. in your time zone, or contact you at work if you’ve told them your employer prohibits such calls. These aren’t suggestions—they’re federal law with real enforcement mechanisms.

Document every violation carefully:

• Keep a detailed call log with date, time, caller name, and what was said
• If your state allows one-party consent recording (38 states do), consider recording calls
• Save all voicemails and written correspondence

Under FDCPA, once TSI receives your written request to stop contact, they can only contact you to confirm they’re ceasing communication or to notify you of specific legal actions they intend to take.

Enforcement and damages: FDCPA violations can carry up to $1,000 per lawsuit (not per violation) in statutory damages, plus actual damages for any harm caused (lost wages, emotional distress), and attorney fees paid by the collector—meaning you may not need to pay legal costs upfront. Many states offer additional remedies under state consumer protection laws with higher damage awards.

File a complaint with the Consumer Financial Protection Bureau (CFPB), which typically generates a response from TSI and creates a regulatory record of their conduct.

Guardian Litigation Group’s debt resolution program provides strategic negotiation that leverages legal expertise to secure better settlement terms than consumers typically achieve on their own. We are a law firm with the legal authority to represent our clients in court if TSI takes aggressive action.

The information provided in this blog article is for informational purposes only and should not be construed as legal advice. It is not intended to create an attorney-client relationship.