Legal Question in Credit and Debt Law in Pennsylvania

If you have a contract that requires you to pay a certain amount per month, and you aren't in breach of the contract, they can't unilaterally increase the amount, or accelerate the loan. You have no reason to agree to any change if what you say in your post is accurate.

I would echo what Attorney Pascal has written. However, if the agreement was made in New Jersey, does it provide that it will be interpreted or governed in accord with New Jersey law? If so, then I would find an attorney licensed to practice law in New Jersey and ask them to review the document.

If you are not in default, then the lender cannot make a demand for you to pay it back at an increased rate. So go ahead and call their bluff! I hope that you have made a copy of each and every payment that you have made to this person as you may need it if they try and sue in small claims.

You say that you live and work in PA. PA does not have wage garnishment and your wages generally cannot be garnished (there are some exceptions, but not generally for private loan debt other than child support). However, if your employer is located in a state where there is wage garnishment, any judgment that is entered could be transferred to that state and enforced. If that is not a concern (you have a PA employer located in PA or a non-wage garnishment state) then do not worry.

You can respond in a couple ways. You could tell the person that you have consulted with attorneys and that their information is incorrect. Do not email them but send them a letter via UPS or FedEx. You could also pay an attorney to actually review the document and send the person a letter advising them of the circumstances and to back off.

I would do it for a reasonable fee, but the letter will have greater impact if it comes from an attorney who is licensed in both Pennsylvania and New Jersey.

Either way, tell them that you are protected by the PA Fair Credit Extension Uniformity Act which says:

73 P.S. � 2270.4(b)

(5) A creditor may not use any false, deceptive or misleading representation or means in connection with the collection of any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this paragraph:

(ii) The false representation of the character, amount or legal status of any debt.

(iv) The representation or implication that nonpayment of any debt will result in the arrest or imprisonment of any person or the seizure, attachment or sale of any property of any person unless such action is lawful and the creditor intends to take such action.

The act applies to original creditors/lenders. Violations of the act are enforceable as provided in 73 P.S. � 2270.5 below. Tell them not to contact you again and DO NOT renew your offer to pay anything other than is specified in the agreement. It may be that they are having financial prblems, but given their jerkiness, I would not pay them back any faster than you have to.

73 P.S. � 2270.5 Enforcement and penalties

(a) Unfair trade practices.--If a debt collector or creditor engages in an unfair or deceptive debt collection act or practice under this act, it shall constitute a violation of the act of December 17, 1968 (P.L. 1224, No. 387), known as the Unfair Trade Practices and Consumer Protection Law. [FN1]

(b) Jurisdiction.--An action to enforce any liability created by this act may be brought in any court of competent jurisdiction in this Commonwealth within two years from the date on which the violation occurs.

(c) Remedies.--Remedies available for violation of this act and the Fair Debt Collection Practices Act (Public Law 95-109, 15 U.S.C. � 1692 et seq.) shall not be cumulative, and debt collectors who violate this act and the Fair Debt Collection Practices Act shall not incur cumulative penalties.

(d) Defenses.--A debt collector or creditor may not be held liable in any action for a violation of this act if the debt collector or creditor shows by a preponderance of the evidence that the violation was both not intentional and:

(1) resulted from a bona fide error, notwithstanding the maintenance of procedures reasonably adapted to avoid any such error; or

(2) resulted from good faith reliance upon incorrect information offered by any person other than an agent, servant or employee of the debt collector or creditor.