Legal Question in Credit and Debt Law in Pennsylvania

I reside in Pennsylvania. In the last two weeks, I have had two separate "collections" agencies call me saying that I owe money on a Payday Loan. One name was PayDay1, the other was ThinkCash. After doing some research and calling the Dept. of Banking, I have found that in Pa, payday loans are illegal. These companies called me threatening to send court documents, said they are going to take me to local court. They've been calling my ex husband, friends, and parents. I applied for a loan a few years ago online, and all the information I had to fill out, they had, including my bank account number (which has been closed since 2009). With that being said, I don't recall ever taking out these loans. If a debt recovery company "bought" the so called debt from these payday loan companies, can this debt recovery company take me to court? The one recovery company is called Liberty and based in Colorado. These calls have me so shaken up that I was even ignorant enough to give them my prepaid credit card number (which I have subsequently cancelled). These calls are ruining my life. The company that called me today, Liberty, made an "arrangement" with me for biweekly 50$ payments for this alleged debt. I wanted to do whatever I could to stop the calls which was to say yes to the payments.


Asked on 6/13/12, 8:34 am

1 Answer from Attorneys
Rachel Hunter

Never ever get a payday loan. I never hear about any good outcomes from it.

Making payment arrangements was a bad idea. However, stop worrying so much. Anyone can sue anyone else. However, it is very unlikely that you will be sued. I don't know how much you borrowed or when, but if it was prior to 2009, then the statute of limitations will soon expire if it has not already. If it has expired, it makes it extremey unlikely that they would sue. And even if any lawsuit was timely, a lawsuit is still unlikely. Companies have to get a PA-licensed attorney to file suit. Chances are that they are not going to spend the money on a lawyer as it would cost them more than you owe.

I know the calls are embarrassing and nerve-wracking. However, being called is better than being sued. You can change your number, ignore the calls or unplug the phone. Or create f8unny ways to answer like (Internal Security - Agent Smith speaking ...). Be creative. This will definitely have them perplexed and the companies will eventually stop calling.

If this is a debt recovery company, then they have to abide by PA and federal debt collection law. Have you received a letter from them and disputed the debt? If you insist on talking to them, ask if the call is recorded. Tell them you are recording and ask if they consent to that. Ask them if they sent you a letter as required by law. Chances are the answer is no and they will be stuttering at this point if they have not hung up first. Tell them that you have consulted with a lawyer (this is not really a lie - I am a PA lawyer) and that the lawyer has apprised you of your rights and that they are to cease any further contact with you until they send you written demand as per PA federal and state debt collection law and if they continue to violate the law, then you will sue them! You can recover extra damages and get your counsel fees if they violate the law. Then hang up.

You may email me if you actually receive a letter from them and I will tell you what to do next. However, I don't think you will ever hear from them again.

Email me if this works!

I would not wor

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Answered on 6/13/12, 10:26 pm


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