How To Deal With Penn Credit Collection Agency in 2025

Penn Credit is a third-party debt collection agency. They collect overdue bills for other companies and government agencies. They don’t usually buy debts. Instead, they recover money for the original creditor.

Penn Credit collects several types of debts:

• Traffic tickets, court citations, taxes, and parking fines for government entities
• Unpaid medical bills from hospitals and nursing facilities
• Unpaid toll bills from toll road operators
• Unpaid electric and phone bills from utility companies

Their full name is Penn Credit Corporation.

Penn Credit contact information:

Mailing address: PO Box 69703, Harrisburg, PA 17106

Phone number: (800) 900-1380

Why Is Penn Credit Contacting You?

You received a call or letter from Penn Credit. That means you have a past-due bill sent to collections. It could be a traffic ticket, toll, medical bill, utility account, or another unpaid debt.

The original company or government agency hired Penn Credit to collect the debt. Penn Credit is now your primary contact for all account matters. You’ll go through them for questions about the balance or payment options.

Is Penn Credit Legitimate?

Yes, Penn Credit is a legitimate debt collection agency. As of late 2025, they’re accredited by the Better Business Bureau with an A+ rating. However, their customer review rating is just 1.4 out of 5 stars. The BBB has received 223 complaints against them in three years.

The Consumer Financial Protection Bureau has received 387 complaints about Penn Credit in the last year. Many complaints allege Penn Credit tried to collect debts already paid. Others claim Penn Credit didn’t provide enough information to verify the debt.

Note: These reviews highlight relevant issues. They may not represent all consumers’ experiences.

How To Report Creditor Harassment

The Fair Debt Collection Practices Act protects you from harassment and unfair treatment. The CFPB is the government agency that enforces this law.

Some complaints about Penn Credit involve potential FDCPA violations. If you believe Penn Credit is violating your rights, you can submit a complaint to the CFPB.

Watch Out for Scams

Penn Credit is a real debt collection agency. Scammers sometimes use legitimate company names to trick people. They want your money or personal information like Social Security numbers.

Be cautious if someone threatens you or demands immediate payment. These are common signs of a scam. You have the right to ask questions and verify the debt.

Do You Have To Pay Penn Credit?

You need to make sure the debt is accurate first. Debt collectors don’t always have complete information. Mistakes happen frequently.

Validating the debt helps confirm:

• You actually owe the money
• Penn Credit is authorized to collect it
• The amount they’re asking for is correct

Request more information about the debt before deciding what to do.

Step 1: Send a Debt Verification Letter

You can request a debt validation letter from Penn Credit. You also have the right to send them a debt verification letter. Both letters serve different purposes.

A debt validation letter is what the collector must send you. They must send it within five days of first contact. The letter should include enough information to identify the debt. It explains your right to dispute the debt within 30 days.

A debt verification letter is what you send to the collector. Many people send this letter if they want more details before moving forward.

If you dispute the debt within 30 days, Penn Credit must pause collection efforts. They can’t call, send letters, or email until they respond to your dispute.

Step 2: Decide What To Do Next

You have several options after reviewing the debt information:

• Dispute the debt if something doesn’t seem right
• Pay the debt in full (not realistic for most people)
• Negotiate a settlement to pay less than the full amount
• Take no action (not recommended by experts)

Choose the option that makes the most sense for your situation.

Option 1: Dispute the Debt

You can dispute the debt if something isn’t right. Maybe the amount is wrong or other details are incorrect. The validation letter should include a deadline, typically within 30 days.

Incorrect information may also appear on your credit report. That could hurt your credit score.

Check for errors by requesting a free credit report. You can get one from each major credit bureau at AnnualCreditReport.com. You’re entitled to one free report from each bureau every week.

File a dispute directly with the credit bureau if you see errors. The Fair Credit Reporting Act gives you the right to challenge inaccurate information.

Some people send a 609 letter to request more details. You can use this letter to ask where the information came from.

Option 2: Negotiate a Settlement

Paying the debt in full is the fastest way to close your account. That’s not realistic for many people. The good news? You can often settle for less than the full amount.

Collection agencies like Penn Credit only get paid if they collect from you. That gives them incentive to accept a lower payment. They’d rather close the account than collect nothing.

Some people start by offering around 25% of the total balance. Every case is different. Settlements often land around 50% of the original amount. Be prepared for some back-and-forth negotiation.

If you’re facing a lawsuit from Penn Credit, our partner Solo can help you respond to the court summons and negotiate a settlement.

Option 3: Ignore the Debt (Not Recommended)

You can ignore Penn Credit’s phone calls or notifications. That’s probably not in your best interest. Not addressing the situation can increase your stress and money anxiety. It doesn’t make the debt go away.

What Happens if You Ignore Penn Credit?

Ignoring a debt collector leads to several consequences:

• Damage to your credit score
• Increased debt as interest charges and fees accrue
• Legal action that could lead to wage garnishment
• More persistent collection attempts

Debt collectors don’t give up easily. Ignoring them makes your situation worse.

Negative information usually drops off your credit report after seven years. But the debt itself doesn’t disappear. Debt collectors can still collect as long as the statute of limitations hasn’t expired.

Bottom line: Ignoring a debt collector won’t solve anything. Use this information to put the debt behind you for good.

Can Penn Credit Sue You?

Penn Credit may sue you if they can’t collect payment. Whether they take legal action depends on several factors:

• Your state’s wage garnishment laws
• How long your debt has been in collections
• The amount of money you owe

You’ll receive official court papers called a summons and complaint. These documents are delivered in person or left with someone at your home. They explain why you’re being sued.

Respond to the summons if this happens. You can do this without hiring an attorney. If you don’t respond, the court may issue a default judgment. You automatically lose the case. Penn Credit can then request a wage or bank account garnishment order.

If you’re worried about responding on your own, our partner Solo can help you draft an answer letter. They’ve helped over 330,000 people respond to debt lawsuits. They offer a 100% money-back guarantee.

Key Takeaways

Penn Credit is a third-party debt collector. They collect debts on behalf of other companies and creditors. If you have an unpaid toll bill, utility bill, or medical debt, Penn Credit is contacting you to collect payment.

The most important step is to validate the debt. Make sure you can confirm the debt is actually yours. Verify the amount is accurate. If it isn’t your debt, you have the right to dispute it. If it is your debt, you can negotiate a settlement to resolve the issue.