In Pennsylvania collections cases, the law often works to protect consumers from creditors. It's important to document any instance of creditor abuse and improper contact, and to speak with an attorney if things get out of hand. The more you know about Pennsylvania law, the more aware you'll be of your rights as a consumer.
Court Appearances
In Pennsylvania, the court can summon you to appear regarding a collections matter. However, the Attorneys for Consumers website points out that a collection agent cannot appear on behalf of a creditor in a court of law. The collection agent can retain an attorney who will represent the creditor before a judge.
Garnishments
According to Pennsylvania consumer attorney Greg Artim, no debt collector has the authority to threaten you with garnishment of your wages, except under certain extreme conditions. In addition, expenses such as credit card debt and medical bills do not qualify as debts that can lead to garnishment. Examples of cases in which garnishment can legally occur are judgments arising from student loans, divorce settlements, child support, back rent, certain taxes and fines arising from a criminal conviction.
Unfair Costs
According to the Attorneys for Consumers website, a collection agency may not attempt to collect money from you that is in excess of what the original creditor has asked the agency to recover from you. They cannot drive up the costs to you by demanding extra service fees, penalties or interest, unless such charges are legal and/or the original creditor has elected to pursue such penalties in the contract with the collection agency.
Deceptive Methods
The law forbids deceptive or abusive treatment by collection agencies. According to the Attorneys for Consumers website, a collector does not have the authority to come to your door with paperwork threatening legal action, or imply that your failure to pay a certain bill constitutes a crime. More importantly, an agency cannot make the paperwork look like it came from the office of a legally licensed attorney.
Statute of Limitations
For most cases involving debt, the statute of limitations provides specific windows of opportunity regarding collection. According to the Fidelity Information Corporation website, the statute of limitations for open accounts, such as credit card balances, is four years. In the case of domestic judgments or liens against real estate, the statute of limitations is five years. When an issue involves personal property, the aggrieved party has 20 years to act. For a foreign judgment, a party has four years to act against you.
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