Though a 2016 Pennsylvania Supreme Court ruling in two consolidated cases said debt collection lawyers can be sued for excessive fees in foreclosure actions, the state Superior Court has now held in one of those cases that the plaintiffs still do not have a cause of action because their mortgage was too large to qualify under the version of the Pennsylvania Loan Interest and Protection Law in effect at the time it was executed.

A three-judge Superior Court panel consisting of Judges Mary Jane Bowes, Victor Stabile and Kate Ford Elliott held in the case of Johnson v. Phelan Hallinan & Schmieg that plaintiffs Edella and Eric Johnson did not have a cause of action because a 2008 amendment to the law, referred to in the opinion as “Act 6,” that increased the limit for what qualifies as a “residential mortgage” did not apply retroactively.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]