How to Settle Debt With Penn Credit Corporation

Penn Credit may contact you about a debt. Ignoring them won’t make the problem disappear. Instead, engage directly with Penn Credit to resolve the situation. You can negotiate a settlement and potentially pay less than you owe.

Here’s everything you need to know about Penn Credit and how to settle your debt.

What is Penn Credit Corporation?

Penn Credit Corporation is a Pennsylvania-based debt collection firm established in 1987. The company focuses on accounts receivable management across multiple debt types.

You can contact Penn Credit using the following information:

• General phone number: (800) 800-3328
• Collections department: (800) 900-1380
• General address: 2800 Commerce Drive, Harrisburg, PA 17110
• Payment address: PO Box 69703, Harrisburg, PA 17106
• Email: inquiries@penncredit.com

Who Does Penn Credit Collect For?

Penn Credit provides accounts receivable management services for these debt types:

• Student loans
• Utility bills
• Small claims
• Telecommunications
• Medical bills
• Government debts

Verify the Debt First

Send a debt validation letter when Penn Credit first contacts you. You have 30 days to respond after their initial contact. During these 30 days, your legal rights increase under the Fair Debt Collection Practices Act.

A debt validation letter helps you get crucial information:

• Why Penn Credit believes you owe this debt
• The amount and age of the debt
• Proof that Penn Credit can legally collect the money

You may discover the debt doesn’t belong to you. Penn Credit might have inaccurate information. If so, send a cease-and-desist letter immediately.

Send a Stop Contact Letter

A cease-and-desist letter asks the debt collector to stop contacting you. Federal law requires debt collectors to honor your written request. However, this letter doesn’t cancel your debt.

Penn Credit can still take other actions. They may sue you or report the debt to credit bureaus. They can contact you once more to confirm they’ll stop calling. They can also notify you if they plan legal action.

How to Negotiate a Settlement With Penn Credit

Penn Credit may accept less than you owe. Settlement beats getting nothing through litigation. They might also agree not to report your account to credit bureaus after you pay.

If you received a summons and complaint, act now. Don’t ignore the lawsuit hoping it disappears. A few proactive steps can get Penn Credit off your back. You could pay significantly less through negotiated settlement.

Follow these three steps to settle your debt:

1. Respond to the pending lawsuit if you’ve been sued
2. Determine what you can afford to pay, then send your offer
3. Get the settlement terms in writing before paying

Many debt collection agencies settle for less than the original amount. They often purchase debts for pennies on the dollar. Our partner Solo makes it easy to start the settlement negotiation process.

Keep copies of all agreements you reach with Penn Credit. Honor your part of the settlement agreement.

Check Penn Credit Reviews Before You Negotiate

Other consumers have shared their experiences with Penn Credit. Reading reviews helps you understand what to expect during negotiations.

Penn Credit reviews are relatively mixed online. Varying experiences are normal since everyone’s situation differs. Some consumers report positive experiences communicating with Penn Credit collectors.

One borrower named Grady shared this review:

“Had a good experience with a PCC representative. She was polite, professional, and efficient in addressing the collection issue PCC had called about.”

Grady’s review highlights the importance of proactively reaching out. His experience shows Penn Credit collectors are open to working with you. You can resolve your debt issue through direct communication.

Request a Goodwill Deletion After Payment

Penn Credit may offer a goodwill deletion when you pay off the debt. Goodwill deletion means the debt collector stops reporting your debt to major credit bureaus.

Write a letter explaining your situation and why you fell behind. Be honest and polite in your request. Sincere and apologetic letters are more likely to succeed. Penn Credit may grant the deletion as a favor.

Negotiate a Pay-for-Delete Agreement

A pay-for-delete agreement means Penn Credit removes the account from your credit report when you pay. The debt collector may accept less than the full amount.

Debt collectors often purchase original creditors’ debts at a discount. They only need to recoup part of the money to profit. Start by offering to pay half the total amount.

Get the agreement in writing before you pay anything. Wait to receive the written agreement in the mail. Ensure they spelled out their terms correctly. Review the terms carefully before agreeing.

After making payment, check your credit report 30 days later. Verify that Penn Credit removed the account. Contact them if the account still appears on your report.

Defend Yourself If Penn Credit Sues You

File an answer to defend yourself in court. Your answer is due within 30 days of receiving the complaint. Missing the deadline allows the judge to issue a default judgment against you.

The 30 days include weekends but not court holidays. Take their lawsuit threats seriously. Federal law prohibits debt collectors from threatening actions they won’t take.

Our partner Solo can help you respond to Penn Credit’s lawsuit and negotiate a settlement.

Draft and File Your Answer

The first step to beating Penn Credit in court is responding to the summons. File a written answer with the court. Send a copy of your answer to Penn Credit.

Know Your State’s Statute of Limitations

State laws limit how long creditors or debt collectors can sue you. The statute of limitations varies by state. Generally, the time limit is two or more years.

You may not need to pay the debt after the statute expires. In some states, even partial payments restart the timer. Investigate the statute of limitations before making any payments to Penn Credit.

File Your Answer on Time

File your answer before the deadline, which is 14-35 days depending on your state. Missing the deadline results in automatic judgment against you.

Follow these six tips when drafting your answer:

1. Don’t tell your entire story in the answer
2. Deny claims you cannot verify or that are false
3. Include affirmative defenses
4. Use standard legal formatting
5. Include certificate of service
6. Sign the document

After drafting your answer, file it with the court immediately. Some courts require electronic filing. Usually you can mail it in or drop it off in person. Send a copy of the answer to Penn Credit. Request a return receipt for proof of delivery.