Pennsylvania Consolidated Statutes

18 Pa. Cons. Stat. § 7312 (2026)

 Debt pooling.

✓ current as of May 2026
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§ 7312.  Debt pooling.

(a)  Offense defined.--Any person engaged in the business of debt pooling shall be guilty of a misdemeanor of the third degree.

(b)  Exceptions.--Subsection (a) of this section shall not apply to:

(1)  Any person who is admitted to practice before the Supreme Court of Pennsylvania or any court of common pleas of this Commonwealth or any partnership or professional corporation all of the members or shareholders of which are so admitted.

(2)  Better business bureaus, legal aid societies or welfare agencies who act without compensation or profit on behalf of debtors as debt adjusters or debt poolers.

(3)  Organizations in the business of debt adjusting or debt pooling that are exempt from taxation under section 501(c)(3) of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3)) or any successor provisions thereof.

(c)  Definitions.--As used in this section the following words and phrases shall have the meanings given to them in this subsection:

"Creditor."  A person to whom a debt or obligation is owed from another whether such is payable in installments or otherwise.

"Debtor."  A person who owes an obligation or debt to another whether such is repayable in installments or otherwise.

"Debt pooling."  The making of a contract, express or implied, with a debtor or debtors whereby the debtor agrees to pay a sum of money periodically or otherwise to another person for the purpose of having such other person distribute the same among certain specified creditors in accordance with a plan agreed upon, or to be agreed upon, and whereby such other person shall receive a consideration for any such services rendered, or to be rendered, in connection therewith.

(Dec. 18, 2007, P.L.462, No.70, eff. imd.)

 

2007 Amendment.  Act 70 amended subsec. (b).

Notes of Decisions
Cited in 5 cases, 1976–2009 · leading case: Ass'n of Settlement Companies v. Dep't of Banking, 977 A.2d 1257 (Pa. Commw. Ct. 2009).
Ass'n of Settlement Companies v. Dep't of Banking, 977 A.2d 1257 (Pa. Commw. Ct. 2009). · cites it 2× “§ 7312 (relating to debt pooling) and that seeks to continue providing such services must submit an application for a license under this act within 45 days of the effective date of this section. The applicant may continue to provide debt management services provisionally,…”
Fricker v. First Pennsylvania Bank, N.A. (In Re Fricker), 113 B.R. 856 (Bankr. E.D. Pa. 1990). · cites it 3× “(hereinafter cited by its general description as a law regulating unfair and deceptive acts and practices, “UDAP”), appear to have merit, particularly since the practices of the creditor are closely related to those prohibited under the Pennsylvania Debt Pooling Act, 18 Pa.C.S.…”
Safeguard Inv. Co. v. Davis, 361 A.2d 893 (Pa. Super. Ct. 1976). · cites it 2× “334, §1, effective June 6, 1973, 18 Pa.C.S. §7312). In the consideration of any appeal from the lower court’s denial of a Petition to Open Judgment, it is well established that we must not reverse the lower court’s action unless a clear abuse of discretion is apparent or an…”
In Re Fricker, 115 B.R. 809 (Bankr. E.D. Pa. 1990). “We also reiterate that the actions of AAA are violative of the Pennsylvania Debt Pooling Act, 18 Pa.C.S. § 7312 (“DPA”), the invocation of which reflected admirable ingenuity on the part of the Debtors’ counsel.”
In Re Fricker, 197 B.R. 208 (Bankr. E.D. Pa. 1996). “Next, Counsel contended that, under the Pennsylvania Debt Pooling Act, 18 Pa. C.S. § 7312 (“the DPA”), one of the bases of the Debtor’s challenges to the claim of the Movant’s predecessor, there is no statute of limitations.”
— 18 Pa. Cons. Stat. § 7312(a) — 1 case
Fricker v. First Pennsylvania Bank, N.A. (In Re Fricker), 113 B.R. 856 (Bankr. E.D. Pa. 1990). “(hereinafter cited by its general description as a law regulating unfair and deceptive acts and practices, “UDAP”), appear to have merit, particularly since the practices of the creditor are closely related to those prohibited under the Pennsylvania Debt Pooling Act, 18 Pa.C.S.…”
— 18 Pa. Cons. Stat. § 7312(c) — 1 case
Fricker v. First Pennsylvania Bank, N.A. (In Re Fricker), 113 B.R. 856 (Bankr. E.D. Pa. 1990). “(hereinafter cited by its general description as a law regulating unfair and deceptive acts and practices, “UDAP”), appear to have merit, particularly since the practices of the creditor are closely related to those prohibited under the Pennsylvania Debt Pooling Act, 18 Pa.C.S.…”
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