Enacted on June 26, 2000, the Fair Credit Extension Uniformity Act regulates the debt collection activities of third part debt collectors in the State of Pennsylvania. The comprehensive state law fills many of the legal holes left by the Fair Debt Collection Practices Act (FDCPA), which the United States Congress made a national law in 1977.
If Penn Credit contacts you at “unusual times and places,” you have the legal right to speak with an attorney to determine the most effective course of action to stop the harassment.
The Fair Credit Extension Uniformity Act forbids the use of deceptive debt collection tactics, such as a third party debt collector impersonating a law firm of law enforcement agency. Pennsylvania law also addresses legal issues such as wage garnishment and statute of limitations.
Debt Collection Statute of Limitations in Pennsylvania
Third party debt collectors do not want consumers to know most states have imposed a statute of limitations on debt collection cases. In Pennsylvania, debt collection statute of limitations begins on the day a consumer defaults on a loan or credit account.
Debt collectors have four years from the date of a credit default to conduct debt collection efforts. Pennsylvania statute of limitations for debt collectors covers virtually every type of debt.
If Penn Credit tries to collect a debt outside the four year legal window, you should speak with a licensed consumer protection law attorney.
Debt Collectors Charging Extra Fees and Interest
Third party debt collectors purchase outstanding debts from original creditors that include fees and interest charges. The million dollar question is can a third party debt collector add more fees and interest charges to a delinquent debt?
The answer is no, unless the original contract with the creditor includes language that authorizes a third party debt collector to continue to tack on fees and interest charges.
Can a Debt Collector Garnish My Wages?
Pennsylvania has created much stricter wage garnishment guidelines than what the FDCPA mandates. Third party debt collectors are prohibited from seeking judgments to garnish wages for delinquent consumer debts that include credit card and personal loan defaults.
The Keystone State permits debt collectors to pursue judgments that garnish wages for alimony, child support, and student loans. Debt collectors can garnish 25% of your disposable income for eligible debts.
Your disposable income must by 30 times greater than the federal minimum wage for a debt collector to take 25% out of your paycheck.
Make Federal and Pennsylvania Laws Work for You
It is one thing to understand federal and Pennsylvania debt collection laws; it is quite another thing to take legal action to protect your rights. Speaking with an experienced Pennsylvania licensed attorney represents the first step to ensure a third party debt collector does not abuse or threaten you.
An attorney also protects your rights when it comes to Pennsylvania wage garnishment and debt collection statute of limitations law.
*Disclaimer: The content of this article serves only to provide information and should not be constructed as legal advice. If you file a claim against Penn Credit or any other third-party collection agency, you may not be entitled to any compensation.