The threatening letters and abusive phone calls do not stop. It seems like a debt collection agency will go all out in an attempt to collect an outstanding balance you owe on a credit card or personal loan account.
What you do not know is that under a federal law, a third party debt collector such as Penn Credit has a limited amount of time to file a lawsuit to force you to pay off a consumer debt by garnishing your wages or have you accept a payment plan that eventually absolves you of a consumer debt. It’s called the statute of limitations and debt collection agencies bank on consumers not knowing their legal rights under the Fair Debt Collection Practices Act (FDCPA).
The FDCPA grants states the power to establish statute of limitations for filing lawsuits. However, the statute of limitations for consumer debt does not include attempts bill collectors make to resolve outstanding debts by calling or sending letters to consumers.
Just a simple phone should trigger concern because debt collection agencies often report negative credit information to each of the three primary credit-reporting agencies. Not only will a licensed lawyer defend your rights granted under the FDCPA, he or she will also ensure a third party debt collector like Penn Credit complies with the Fair Credit Reporting Act (FCRA).
Crafting a Notice to Penn Credit
Consumers do not want to have third party debt collectors contact them by mail or phone, especially if a debt collection agency resorts to underhanded tactics in an attempt to collect outstanding consumer credit card or personal loan balances. The FDCPA prohibits unethical debt collection practices.
This includes implementing deceptive techniques to trick consumers in paying off debts that might have surpassed the length of the statute of limitations. You should hire an experienced consumer protection lawyer right after you receive a letter or phone call from Penn Credit.
Your experienced FDCPA lawyer will use the right legal language to inform Penn Credit the statute of limitations has expired on your account. In addition, your lawyer might include language that requests Penn Credit cease and desist from contacting you again.
![Statute of Limitations Expired for Penn Credit*]()
What Goes in a Statute of Limitations Notice?
The notice your lawyer drafts for a third party debt collector will cite the FDCPA as the legal reference for requesting a stop to all forms of communications that address an outstanding consumer debt. You should never acknowledge a debt exists or worse, make promises to set up a monthly payment plan to pay off a debt.
Any acknowledgement of a consumer debt can restart the statute of limitations, which means Penn Credit has the legal right to file a lawsuit for garnishing your wages. Your notice should avoid using emotionally charged language that motivates Penn Credit to work harder for collecting the delinquent debt in question. Make sure to include the date of the first payment due on the account, which is the date that typically starts the statute of limitations clock.
Speak with an accomplished consumer protection lawyer to learn more about the rights granted under the FDCPA!
*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.
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