Pennsylvania Demand Letter

Introduction

Key Things to Know

1. 1

   Pennsylvania's bad-check statute, 42 Pa.C.S. Section 8304, is stricter than a simple demand: a payee may recover $100 or triple the check's face amount, whichever is greater, only after the check writer has been convicted of passing a bad check under 18 Pa.C.S. Section 4105 and has failed to make full restitution, and only after a separate written demand made at least 10 days before filing suit.

2. 2

   Pennsylvania's Unfair Trade Practices and Consumer Protection Law, 73 P.S. Section 201-9.2(a), does not require a consumer to send any written notice or demand before filing a private damages action; the action is available to a person who purchased or leased goods or services primarily for personal, family, or household purposes and suffered an ascertainable loss.

3. 3

   A demand letter must never threaten arrest, imprisonment, or the seizure of property to collect a debt. The Fair Credit Extension Uniformity Act, 73 P.S. Section 2270.4(b), bars a creditor, including one collecting its own debt owed primarily for personal, family, or household purposes, from representing or implying that nonpayment will lead to arrest, imprisonment, or property seizure, unless the action is both lawful and actually intended.

4. 4

   If a court awards damages under the Unfair Trade Practices and Consumer Protection Law, the award is discretionary, not automatic: the court may, in its discretion, award up to three times actual damages, not less than $100 if any amount is awarded, and reasonable attorney fees, and Pennsylvania law gives a seller no right to cure or tender a remedy to cut off the claim first (73 P.S. Section 201-9.2(a)).

5. 5

   Outside a few narrow situations listed in 42 Pa.C.S. Section 2503, Pennsylvania follows the American Rule and does not let a creditor recover attorney fees simply for presenting a claim and waiting. A construction contract payment dispute is an exception: the Contractor and Subcontractor Payment Act, 73 P.S. Section 512(a)-(b), awards a reasonable attorney fee to the substantially prevailing party and a penalty of 1 percent per month on amounts wrongfully withheld.

6. 6

   Pennsylvania gives an oral contract the same four-year period to sue as a written one: 42 Pa.C.S. Section 5525(a) sets four years for a written contract, an oral contract, and a contract implied in law such as most open-account claims, while Section 5524(3)-(4) gives two years to sue for injury to personal property or trespass to real property.

7. 7

   The Magisterial District Court hears civil claims up to $12,000, exclusive of interest and costs, under 42 Pa.C.S. Section 1515(a)(3), and unlike some states, Pennsylvania does not bar attorneys there: a plaintiff's attorney files an entry of appearance under Pa.R.Civ.P.M.D.J. 207.1. When a law or document refers to the legal rate of interest, or to interest without stating a rate, 41 P.S. Section 202 fixes that rate at 6 percent per year, a flat figure that is not tied to an index or set annually.

Pennsylvania Requirements for Demand Letter

• Bad-Check Civil Damages Require a Prior Conviction

  42 Pa.C.S. Section 8304 lets a payee recover $100 or triple a dishonored check's face amount, whichever is greater, capped so total damages do not exceed the check's value by more than $500, but only after the check writer has been convicted of passing a bad check under 18 Pa.C.S. Section 4105 and has failed to make full restitution.

• 10-Day Written Demand for Bad-Check Damages

  Beyond the conviction requirement, 42 Pa.C.S. Section 8304 also requires the payee to make a written demand of the issuer for the check amount, interest, and any service charge authorized under 18 Pa.C.S. Section 4105(e), made not less than 10 days before the civil action is commenced.

• No UTPCPL Pre-Suit Notice Requirement

  73 P.S. Section 201-9.2(a) lets a person who purchased or leased goods or services primarily for personal, family, or household purposes bring a private damages action for an ascertainable loss without sending any separate written notice or demand before suing.

• UTPCPL Remedies Are Discretionary, Not Mandatory

  Under 73 P.S. Section 201-9.2(a), a court may, in its discretion, award up to three times actual damages, not less than $100 if any amount is awarded, and reasonable attorney fees; neither award is automatic, and the statute gives a seller no right to cure or tender a remedy to cut off the claim first.

• FCEUA Bars Arrest and Prosecution Threats

  The Fair Credit Extension Uniformity Act, 73 P.S. Section 2270.4(b), bars a creditor, including one collecting its own debt owed primarily for personal, family, or household purposes, from representing or implying that nonpayment will lead to arrest, imprisonment, or property seizure, unless the action is both lawful and actually intended, and bars soliciting a postdated check for the purpose of threatening or instituting criminal prosecution.

• Attorney Fees: American Rule With a Construction Carve-Out

  42 Pa.C.S. Section 2503 lists only narrow situations where attorney fees are recoverable, none covering an ordinary contract or services claim. The Contractor and Subcontractor Payment Act, 73 P.S. Section 512(a)-(b), is a construction-specific exception, awarding a reasonable attorney fee to the substantially prevailing party and a penalty of 1 percent per month on amounts wrongfully withheld.

• Four-Year Limit Covers Oral and Written Contracts Alike

  42 Pa.C.S. Section 5525(a) gives four years to sue on a written contract, an oral contract, or a contract implied in law such as most open-account claims, while Section 5524(3)-(4) gives two years to sue for injury to personal property or trespass to real property.

• Fixed 6 Percent Legal Interest Rate

  41 P.S. Section 202 sets Pennsylvania's default legal rate of interest at 6 percent per year for any law or document that refers to interest without specifying a rate; the figure is fixed in the statute, not tied to an index or reset annually.

• Magisterial District Court Limit and Attorneys Allowed

  42 Pa.C.S. Section 1515(a)(3) gives the Magisterial District Court jurisdiction over civil claims up to $12,000, exclusive of interest and costs, and that court does not bar attorneys: a plaintiff's attorney files an entry of appearance under Pa.R.Civ.P.M.D.J. 207.1.