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Collection Agencies in Pennsylvania and Laws

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List of collection agencies in Pennsylvania and around Philadelphia city

If you buy Collection Letters service from a Collection Agency, you will likely have to pay an additional Sales Tax, which ranges between 6% to 7%, applicable to all Pennsylvania businesses and residents.

Debt Collection Laws in Pennsylvania

  1. Fair Debt Collection Practices Act (FDCPA): Like all states, Pennsylvania is subject to the federal Fair Debt Collection Practices Act. The FDCPA applies to third-party debt collectors and prohibits them from using deceptive, abusive, or unfair practices when collecting a debt.

  2. Fair Credit Extension Uniformity Act (FCEUA): Pennsylvania has its own set of debt collection laws known as the Fair Credit Extension Uniformity Act. This law applies to both third-party collectors and original creditors. The FCEUA largely mirrors the federal FDCPA but provides some additional protections for consumers.

  3. Statute of Limitations: As of  2021, the statute of limitations for contracts in Pennsylvania is generally 4 years. This includes both written and oral contracts, as well as credit card debt. Once the statute of limitations has expired, a debt collector cannot sue the debtor to collect the debt. It’s important to note that acknowledging the debt or making a payment can restart the statute of limitations.

  4. Wage Garnishment: In Pennsylvania, wage garnishment for most consumer debts is generally not allowed. However, there are exceptions for debts such as child support, student loans, and taxes.

  5. Bank Account Levies and Property Liens: If a creditor obtains a court judgment against a debtor, they may be able to levy the debtor’s bank account or place a lien on the debtor’s property in Pennsylvania.

  6. Communication with Debt Collectors: Under the FCEUA and the FDCPA, debt collectors are subject to restrictions on their communication practices. For example, they cannot contact debtors at inconvenient times, harass them, or communicate with third parties about the debtor’s debt without permission.

  7. Exemptions: Pennsylvania law provides various exemptions to protect certain property from being seized by creditors to satisfy a judgment. This includes exemptions for retirement accounts and a limited amount of equity in a debtor’s home.

  8. License Requirements: In 2021, debt collectors must be licensed to operate in Pennsylvania, and they must adhere to ethical and professional standards.

As laws are subject to change, please consult an attorney or legal aid organization for the most current information and advice regarding debt collection laws in Pennsylvania.

A complete list of federal laws to be followed by all collection agencies in USA are listed here: Debt collection laws 

Pennsylvania Debt Statistics

  • Average Student Loan in Pennsylvania is about $36,000.
  • The average mortgage debt in Pennsylvania is $145K.
  • The average credit card debt in Pennsylvania as of 2019 is around $6,150
  • Pennsylvanians had an average credit score of 687 in 2018

Pennsylvania Geographical Stats

  • Population in Pennsylvania: 12.7 million (year 2018)
  • Number of millionaires: 309 K  ( year 2017)

Pennsylvania debt collection agency can collect all across the state including these cities Philadelphia, Pittsburgh, Allentown, Erie, Reading, Upper Darby, Scranton, Bethlehem, Bensalem and Lancaster.

  • Philadelphia is a smaller city, comparatively, home to just over 1.5 million people, but 43.3 million people visited the city last year.
  • Philadelphia is known as The City of Brotherly Love.
  • Open Systems Healthcare, Duane Morris LLP, and Keller Williams Realty are the top employers for Philadelphia.
  • Philadelphia was a key city in the American Revolution, which means the American History of the city is rich and abundant. Philadelphia is home to The Liberty Bell and Independence Hall.
  • The first zoo, hospital, and medical school all started in Philadelphia.
  • Some of the biggest tourist attractions include The Philadelphia Museum of Art, where you can take in the artwork but also run up the iconic Rocky steps, the Love Statue, and the waterfront.
  • Philadelphia is the perfect destination for history lovers, with quaint historic districts combined with a thriving metropolitan culture.

If the debtor has hired an attorney, all communications should be done through him instead of the debtor going forward. Avoid contacting the debtor at the workplace if he has told you not to do so.