Pennsylvania Bill Concerning Loan/Debt Services (S 1072)


Issue Brief

In November 2015, S 1072 was filed as a result of complaints by constituents who claimed of being harassed by debt collectors.

The bill amends the Pennsylvania Fair Credit Extension Uniformity Act (73 Pa.C.S. § 2270.4) and provides that a debt collection act or practice is deemed unfair or deceptive when a debt collector or creditor communicates more than three times by telephone with a consumer regarding a debt. However, S 1072 will not prohibit forms of communication other than by telephone following a third telephone call. 


S 1072 stirs concern among legitimate loan/debt servicing agencies, including members who have loan servicing operations. These entities need to be able to communicate with the consumer regarding their loans. 

Position/Call to Action

ARDA and ARDA-ROC will monitor this bill and will consult with interested members about joining others to oppose it, if S 1072 should move forward. 

Issue Updates

S 1072 remains in Committee and is not scheduled for a vote. Its sponsor, Sen. Stuart Greenleaf has decided to wait for rulemaking by the Consumer Financial Protect Bureau (CFPB) before determining to proceed on this bill.

Other entities opposing this bill include ENCORE Capital Group, Pennsylvania Higher Education Assistance Agency (PHEAA) and the Pennsylvania Creditors Bar Association (PACBA).