Legal Question in Credit and Debt Law in Pennsylvania

Re: Credit Card Debt

You asked about recourse against a creditor to whom you willingly gave money for another purpose.

There is no recourse. It is black letter law that lenders can recover from persons who owe it money from any other instrumentality used by that person with that lender. For example, if someone was daft enough to give you a check and you cashed it at the credit union then the credit union would have been allowed to deduct the amount you still owed them. If you still owed them more than the check was worth then they would be in the right of withholding the entire amount of the check.

And here's the fun part. If you have a savvy credit union and the credit union is an affiliate of your employer, they can make deductions right from your paycheck without even getting a judgment.

Pay the bill, face the consequences or go bankrupt. By the by, if the CU is affiliated with your employer then any bad debt can be reflected in your evaluation and can be the cause for adverse action.

Regards,

Roger