Legal Question in Credit and Debt Law in Pennsylvania

Don't pay a penny until you consult an attorney near you that handles consumer debt, i'm serious, not a penny.

If a lawyer sent you a letter then you need to hire a lawyer to respond. Failing that, at least meet with a lawyer. It is unclear from your post, but when was the last time that you paid, if at all? Is there a promissory note evidencing the loan? If so, was this a demand note or installment note? Was a written demand for payment made? Why does the lawyer say you need to pay $150 a week? Was a judgment entered? If a judgment was entered that is different than if there was no legal action at all. In the latter case, the statute of limitations would bar collection of the debt (assuming the loan was made in PA; the statute of limitations for most PA contracts, including promissory notes, would be 4 years).

My suggestion is that you might be better off with local counsel. Seek out a lawyer who does consumer-law or defense of credit card debts (its similar to your situation). Failing that, I am admitted in PA (although I live in NC now). I give free email consults, charge $50 for a 30 minute phone consult, $50 to review documents and could draft a response letter to counsel for a reasonable fee depending on the situation. Please contact me at [email protected] if interested.