Nexa Collections

Collection Agencies in Pennsylvania and Laws

Directory >> USA >> Pennsylvania

Not sure which collection agency to hire?
Then let us help you: Contact Us

List of collection agencies in Pennsylvania and around Philadelphia city

Pennsylvania is a paradox. For consumer debt (like medical bills), it is one of the most protective states in the nation—strictly prohibiting wage garnishment for most debts. If your current agency tries to “bully” a consumer here, they aren’t just wasting time; they are inviting a lawsuit under the Fair Credit Extension Uniformity Act (FCEUA).

But for B2B and Commercial debt, Pennsylvania offers some of the most powerful creditor weapons in the country—tools like Confession of Judgment and CASPA that allow you to bypass years of litigation and secure payment almost instantly.

Most national agencies treat Pennsylvania like “just another state.” They miss the nuances that make the difference between a write-off and a full recovery. We don’t.

The Consumer Challenge: The “No Garnishment” Reality

If your current agency tells you they will “garnish wages” to collect your unpaid consumer invoices, they are lying to you.

  • The Law: Pennsylvania is one of the few states that generally prohibits wage garnishment for commercial debts. Unless you are collecting for child support, taxes, or student loans, you cannot touch a debtor’s paycheck.

  • The Risk: Lazy agencies rely on the threat of garnishment. In PA, making that threat is a violation of the FCEUA (Pennsylvania’s state-level FDCPA). Savvy debtors know this. If your agency threatens an illegal action, the debtor can sue you for damages.

  • Our Solution: Since we can’t take wages, we target assets. We use bank levies to freeze funds and property liens to secure your position against real estate. A frozen debit card is often more motivating than a threat of garnishment.

The B2B Advantage: Pennsylvania’s “Nuclear Options”

While consumer laws are strict, Pennsylvania gives businesses incredible power to collect from other businesses—if your contracts are set up correctly.

  • The “Confession of Judgment”: Pennsylvania allows commercial contracts to include a clause where the debtor effectively waives their right to a trial. If they default, we can skip the lawsuit and go straight to the Prothonotary to enter a judgment.

  • CASPA Power: For construction and trades, the Contractor and Subcontractor Payment Act (CASPA) allows you to recover 1% interest per month (12% per year) plus penalties and attorney fees. We use this statutory leverage to force payment from sluggish contractors.

Our “Keystone” Recovery System

We don’t believe in a “one-size-fits-all” approach. A dental patient in Philadelphia requires a diplomatic touch, while a logistics manager in Pittsburgh requires a firm commercial demand. Our model adapts to the debtor.

Phase 1: The “Diplomatic” Hammer (Flat Fee)

We believe you can be firm without being rude. For a low flat fee (approx. $15/account), we send a series of FCEUA-compliant demands.

  • Why it works: We educate the debtor on the validity of the debt without making illegal threats.

  • The Benefit: This clears out the 40-50% of people who just needed a nudge. You keep 100% of these dollars.

Phase 2: The Asset Investigation (Contingency)

For those who ignore the letters, we move to our contingency team (charging 40-50% only if we collect).

  • The Strategy: Since we often can’t garnish wages, we use advanced skip-tracing to locate bank accounts and real property.

  • The Leverage: We negotiate based on convenience. “Mr. Smith, a Sheriff’s Sale of your personal property is public and embarrassing. Let’s settle this privately.”

Phase 3: Legal Execution

We have a network of attorneys ready to execute on assets. In PA, the Sheriff can physically tag and sell personal property (vehicles, equipment) to satisfy a judgment. Often, just the arrival of the Sheriff with a Writ is enough to prompt immediate payment.

Who We Serve & Real Results

We have specialized divisions to handle the unique compliance needs of specific industries.

Healthcare (Medical/Dental)

  • Case Study: An Orthopedic Clinic in Ohio (with PA patients) had $60,000 in unpaid balances. We used our flat-fee diplomatic letters to explain the high-deductible costs to patients rather than threatening them.

  • Result: 45% of patients paid voluntarily via the low-cost letters, saving the clinic thousands in commission fees.

B2B & Construction

  • Case Study: A manufacturer owed a freight brokerage $24,000 and stopped responding. We bypassed the AP clerks and sent an Attorney Demand Letter directly to the CEO/CFO.

  • Result: 100% recovered in 32 days. The CFO cut the check immediately to avoid a credit downgrade.

Field Services (Restoration/HVAC)

  • Strategy: We utilize Mechanic’s Liens and CASPA regulations to ensure you aren’t treated as a “bank” by your customers.

Quick Guide: Pennsylvania Collection Laws

For your reference, here is the cheat sheet on what is (and isn’t) legal in the Commonwealth.

Feature Consumer Debt (B2C) Commercial Debt (B2B)
Wage Garnishment PROHIBITED (except for rent/support) PROHIBITED generally, but other assets are fair game.
Confession of Judgment ILLEGAL LEGAL (Allows instant judgment without trial).
Statute of Limitations 4 Years (Written/Oral/Open Accounts) 4 Years (20 Years for instruments “under seal”).
Interest Rate Cap 6% (unless licensed) No Cap (Contractual rates apply).
Key Regulation FCEUA (Applies to you & the agency) Contract Law / CASPA.

Stop using a “Wage Garnishment” strategy in a “No Garnishment” state.

Click here for a Free Audit of Your Pennsylvania Claims