Debt relief in Pennsylvania: collection rules, time limits and your options
Updated November 9, 2026
Pennsylvania at a glance (checked November 2026)
| Pennsylvania | |
|---|---|
| Time limit to sue on credit cards and most consumer debts | 4 years |
| Wage garnishment for consumer debt | Not allowed for credit cards, medical bills or personal loans |
| State debt collection law | Fair Credit Extension Uniformity Act, which covers original creditors too |
| Who licenses debt collectors | No state license; debt settlement and debt management companies need one |
| Where to complain | Pennsylvania Attorney General's Bureau of Consumer Protection, and the CFPB |
Debt collection rules in Pennsylvania
Pennsylvania's Fair Credit Extension Uniformity Act (73 P.S. 2270.1 and following) applies to creditors collecting their own debts as well as to collection agencies. It bans harassment, false or misleading statements and unfair practices, such as threatening a lawsuit on a debt that's too old to sue on.
Pennsylvania doesn't license collection agencies, but debt settlement and debt management companies need a license from the Department of Banking and Securities.
The federal Fair Debt Collection Practices Act applies to third-party collectors too. They can't call before 8 a.m. or after 9 p.m., must send you a validation notice, and have to stop collecting if you dispute the debt in writing within 30 days, until they verify it.
How long creditors have to sue
Pennsylvania gives creditors 4 years for most debts, including credit cards, personal loans and medical bills (42 Pa.C.S. § 5525). The clock usually starts when you default.
Once 4 years have passed, a collector can still ask you to pay but can't sue you or threaten to. Get advice before paying anything on an old debt.
What can be garnished in Pennsylvania
Pennsylvania doesn't allow wage garnishment for most consumer debts, including credit cards, medical bills, personal loans and car loans. Wages can be garnished only for a short list of debts, such as child support, taxes and student loans.
A creditor with a judgment can still have the sheriff take money from your bank account. Pennsylvania protects $300 across all your accounts, and the first $10,000 in an account that gets exempt payments such as Social Security by direct deposit. Claim your exemptions on the form that comes with the court papers.
Ways out of debt in Pennsylvania
- Nonprofit credit counseling can put your cards on one debt management plan, usually at lower rates. Debt management companies need a Department of Banking and Securities license, so check before you sign up.
- Before a consolidation loan, our debt-to-income calculator shows whether your ratio is in the range lenders look for.
- Debt settlement companies need a Department of Banking and Securities license, and federal rules ban their fees until a debt is actually settled. Forgiven amounts can count as taxable income.
- Bankruptcy: Pennsylvania lets you choose between its own exemption list and the federal one. The state list has no homestead exemption, so homeowners usually choose the federal list. A bankruptcy attorney can tell you which keeps more of what you own.
Where to get help or complain
- Pennsylvania Attorney General, consumer complaints takes complaints about collectors online or at 1-800-441-2555.
- Consumer Financial Protection Bureau takes complaints about collectors and lenders nationwide.
- PALawHelp has free legal information from Pennsylvania's legal aid programs and helps you find free legal help.
General information about Pennsylvania law, not legal advice. Checked November 2026.