Can a Collection Agency threaten...?

Collection agency threats are about as common as oxygen being in the air. To begin, they legally cannot "threaten" to do anything that is illegal, and they cannot "threaten" to take an action that they do not intend to actually take.



The biggest threat that I hear about is wage garnishment. To start, let's be absolutely clear on this, wage garnishment cannot happen in Pennsylvania except under very limited circumstances. Generally, I can say that a collection agency lawsuit will not meet with those very limited circumstances. In that regard, any threat to garnish wages in PA by a collection agency is illegal because they simply cannot garnish wages here in Pennsylvania.



Another big threat that I hear is that they're going to take your house. Really? I don't think so. For the most part, the collection agency case is for a few thousand dollars. I'd say that the average case that my office handles is over an alleged debt of $6000. Does it remotely make sense that they could take your house for a debt of $6000? Of course not. That type of threat is generally illegal in PA. (As a side note, if the collection agency does win in court, they may be able to place a lien on your home. This is much different than taking it).



We're going to press fraud charges or put you in jail if you don't pay this debt! Another illegal threat. First of all, there is no court in the land that is going to put you in jail for failing to pay a credit card or collection agency debt. Second, they can't press fraud charges against you. If there was the possibility of fraud, wouldn't it make sense that the original creditor or financial institution that your alleged account was with would do that? They didn't, and instead choose to sell your claim to the collection agency. Such a threat in PA is illegal.



Any other type of threat that sounds outlandish or "just not right" is likely illegal in PA. The illegal threats are pretty easy to see. On the flip side, there are some "threats" that are legal in PA. The threat to sue is one. The collection agency absolutely has the right to file a lawsuit against you if you fail to pay an alleged debt. Whether they can actually prove the case in court is another issue that has been answered in detail in many of my other articles.



The Fair Debt Collection Practices Act (FDCPA) is a federal law that protects consumers from unfair "threats" and practices by collection agencies. It is a fairly strong law that makes it illegal for the debt collector to engage in abusive practices. Making some of the above described threats is a violation of this law, and may give you the ability to sue the collection agency for its conduct.



In a nutshell, if you hear a threat that just doesn't sound legal, it probably isn't. Make a note of who made the threat, what agency they were with, what the date was, time of day and then contact a consumer attorney with that information. You may just have a lawsuit against the collection agency.





Greg Artim is a Consumer Attorney based in Pittsburgh, PA. He handles Lemon Law and Credit Card Defense matters in all of Pennsylvania. For more answers to your Pennsylvania Credit Card Law questions, please visit his website at PA Credit Card Law .