A Pennsylvania debt collector didn’t violate a federal consumer law when it attempted to collect a credit card debt that accrued interest at 22.9%, the Third Circuit said.
The appeals court ruling affirms the dismissal of a proposed class action filed by debtor Michael Lutz, challenging the interest rate on money sought by debt collector Portfolio Recovery Associates LLC.
Portfolio had acquired the outstanding obligation and its interest rate from Capital One Bank.
Lutz contended the interest rate was limited by the Pennsylvania Consumer Discount Company Act, which says that an unlicensed firm “in the business of negotiating or making ...
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