Penn Credit Corporation on Your Credit Report? Fight Back and Win

Last Updated:
April 22, 2023

Penn Credit Corporation is a debt collection company based in Harrisburg, PA. They’ve been conducting business for more than 30 years, and are licensed to do so in every state in the US. Penn Credit specializes in recovering outstanding debts for clients in various sectors, such as:

  • Healthcare
  • Financial Services
  • Government Agencies
  • Utilities

Is Penn Credit Corporation a Scam?

Penn Credit Corporation is a legitimate company and NOT a scam. As is the standard for the debt collection industry, they are licensed and regulated by the Consumer Financial Protection Bureau (CFPB). They have an accreditation with the Better Business Bureau (BBB), and currently have an A+ rating. 

However, like many other debt collectors, Penn Credit Corporation has multiple complaints accusing them of violating federal and state laws in their collection practices. So, let's discuss how best to proceed if you are dealing with calls from Penn Credit Corporation.

How to Handle Your Situation With Penn Credit Corporation

It's very important to understand your rights as you deal with communication from Penn Credit Corporation. As a debt collection agency, they must adhere to The Fair Debt Collection Practices Act (FDCPA), a federal law put in place to regulate collection agencies. The FDCPA prohibits harassment and deceptive collection tactics. 

Another federal law consumers should be aware of is the Fair Credit Reporting Act (FCRA). This law helps protect consumers when their credit report contains errors. Here are some options you may want to consider to give you some control over your situation with Penn Credit Corporation:

Ask for verification of the debt

Errors on credit reports are more common than you may think. If you don't recognize the debt and think there may be an error – request that Penn Credit provide proof that your debt is legitimate. Even if you don't suspect an error – it is still a good idea to request verification. Penn Credit Corporation is required to provide this information, including the total amount owed and the name of the creditor.

Request that they stop contacting you

If you're receiving around-the-clock calls from Penn Credit, you have the right to request that they stop contacting you entirely. Under the FDCPA, debt collectors are supposed to cease contact if you send a written request for them to do so. However, if they are able, they may still take legal action to collect your debt – in which case you would be notified.

Dispute the debt

If you have reason to believe the debt is not yours or there is some sort of error – you can dispute it. Some of the most common errors include:

  • duplicate debt
  • someone with a similar name’s debt
  • late payment remark when the debt was paid on time
  • identity theft
  • old debt
  • lack of updates

You can dispute the debt with the Penn Credit Corporation directly or with the credit reporting agencies. The FCRA was established to regulate credit reporting, ensure accuracy, completeness, and up-to-date reporting. If you provide proof that the debt is inaccurate in your dispute – Penn Credit Corporation must remove the account from your credit report.

Ask for guidance

If you're having trouble resolving the debt – seek professional assistance. Our firm specializes in helping clients remove inaccurate information from their credit reports and navigate debt collection issues. We offer a free case review for prospective clients.

How to Resolve a Legitimate Debt with Penn Credit Corporation

Negotiate a payment plan 

Look critically at your current financial situation. If you are unable to pay the full amount, figure out your budget and how much you will be able to afford each month. Be honest about your situation with Penn Credit Corporation – you may be able to negotiate a payment plan within your budget. 

Be sure you get any agreement in writing and make your payments on time if you want to avoid further negative impact on your credit score.

Settle the debt for less than the full amount

There’s a good chance Penn Credit Corporation purchased this debt at a discount from the original creditor. Therefore, they may be willing to settle the debt for less than the full amount owed – especially if you can pay that chunk amount right now. If they do agree to settle for less than the full amount, get your settlement agreement in writing. 

Make sure the terms of the agreement are clearly stated to avoid any issues in the future. Check back in on your credit to make sure the account is no longer listed on your report.

Pay the debt in full

If you can afford to do so – the best thing to do is pay off the debt in full. This is the easiest way to avoid any credit problems and is the surest way to get Penn Corporation removed from your report. It’s important to get a receipt to confirm your payment and keep it in your records. 

If the negative mark does not come off your report, you will need this as proof when you file your dispute.

What Will Happen If I Ignore the Debt?

You can definitely face some serious consequences by ignoring your debt altogether. Debt collectors may report your delinquency to credit bureaus, which can negatively impact your credit score – this can lead to a lot of problems, including but not limited to:

  • higher interest rates
  • trouble getting approved for credit cards or loans
  • difficulty renting a house or apartment
  • higher insurance premiums

If you have a secured debt – such as a car loan or mortgage – the lender may be able to repossess or foreclose on that property. Another possible consequence of ignoring debt is a potential lawsuit or wage garnishment, which is definitely something you want to avoid if you are already experiencing financial difficulties.

If you find yourself in a situation where you cannot make payments on your debt, it's important to communicate that with the Penn Credit Corporation. You may be able to negotiate a more feasible payment plan or settlement agreement. Ignoring your debt will only make the situation worse – be proactive and take action to handle your debt before it becomes unmanageable.


Dealing with debt collectors can be a hassle, but it's important to remember that you have rights under the FCRA. Whether you are disputing a debt or trying to resolve a legitimate debt with Penn Credit Corporation, make sure you keep detailed records and get everything in writing. If you need assistance – our firm offers a free case review to help you navigate the process and ensure that your rights are protected.

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