Allentown, PA asked in Consumer Law, Contracts and Collections for Pennsylvania

Q: Which statute of limitations applies to my debt?

I live in Pennsylvania. I believe PA follows whichever statute of limitations is shortest, is this true?

The personal loan was obtained from Best Egg, which is based in Delaware. But, the Original Creditor is listed as Cross River Bank (Marlette Funding, LLC). Cross River Bank is based in

New Jersey, but Marlette Funding, LLC is based in Delaware.

Then the loan defaulted/ was sold to a collections agency listed as LVNV (Resurgent), based in South Carolina.

Does the statute of limitations start from the last payment made to Best Egg? Or when the collections agency took over the account?

2 Lawyer Answers
W. J. Winterstein Jr.
W. J. Winterstein Jr.
  • Consumer Law Lawyer
  • Boyertown, PA
  • Licensed in Pennsylvania

A: it is often said by the courts that "the debt follows the debtor". in other words, to sue on the debt, a creditor must sue in the jurisdiction where the debtor can be found and served with process.

The PA statute of limitations is located in PA Statutes, ch. 55, Sec. 5525. I believe that there is a four-year statute of limitations for enforcement of your debt, running from the date of your most recent default.

Peter N. Munsing
Peter N. Munsing
  • Wyomissing, PA
  • Licensed in Pennsylvania

A: The date of breach or non-payment starts the clock. Four years. However, the person holding the debt has to show an assignment, and there has to be an assignment from whoever you made the agreement with. So, if they never really assigned the paper, then there is no chain.

If they call you don't want to admit the debt. Tell them they need to show you the paper showing that the original person you had an agreement with assigned them that agreement.

For any call, not the date, time, name of person you spoke to and what they said.

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