Legal Question in Credit and Debt Law in Pennsylvania

They can threaten all they want. A lawsuit ain't gonna happen. (1) Payday loans in PA are illegal UNLESS a payday lender has bothered to register with the state and complies with the laws. Most do not as it eats into their profits. If they do not, they are precluded from getting more than 6% interest. Read about payday loans in PA at my website: www.rachelhunterlaw.com. I have an article there about payday loans in PA specifically.

(2) Even by some miracle this loan is proper, the statute of limitations in PA is 4 years running from either the date of your last payment OR the date on which you were to make a payment and failed to do so. If your last payment or payment date was 2008 then the statute of limitations bars collection of the debt. If this is an overseas lender or lender claiming to be an Indian tribe that is not subject to PA law, they are wrong. If they want to sue you in PA court, then the statute of limitations will apply and you will assert it in an answer if and when you are sued.

No lender or attorney is going to bring an action knowing that the statute of limitations has expired. They can huff and puff all they want but they are paper tigers and they know it. So if they threaten to sue, tell them to bring it on.

Depending on who the lender is, you may want to contact the PA Department of Banking. They went after Western Sky/Cash Call/Delbert and entered into a consent order with them. I have not done any further research to see what other payday lenders they are taking action against, but you may want to discuss with them to see.