How to collect unpaid invoices in Pennsylvania: two-party consent, lien law, and Magisterial Court

Pennsylvania's Wiretapping and Electronic Surveillance Control Act (18 Pa. C.S. §5703-5704) prohibits intercepting wire or oral communications without the consent of all parties. Violating the statute is a felony in the third degree. Any recorded collection call placed to a Pennsylvania customer requires affirmative consent from all parties -- verbal disclosure and non-objection at the opening of the call is the standard method. Written consent obtained at the time of service (as part of a service agreement) is the cleaner approach. Do not record Pennsylvania calls without obtaining this consent first.

Pennsylvania's Mechanics' Lien Law (49 P.S. §1101 et seq.) gives contractors and subcontractors 6 months from the last day on which labor or materials were furnished to file a mechanics' lien claim in the Court of Common Pleas of the county where the property is located. Six months is longer than most states (California, Texas, and Illinois all have shorter windows), which means a contractor has more time to attempt collection before filing -- but this also means waiting too long is still possible. Set the 6-month deadline on the last day of work, not when the invoice goes overdue.

Subcontractors in Pennsylvania must file a preliminary notice -- sometimes called a Notice of Furnishing -- with the property owner within the same 6-month window. For subcontractors working under a GC on a private project, the notice should also be served on the GC. The failure to provide timely notice to the owner can impair the lien claim. Pennsylvania does not have a universal preliminary notice requirement at the start of a project the way California does, so the 6-month filing window serves as both the notice and the lien perfection deadline for subcontractors.

Pennsylvania Magisterial District Courts (formerly called District Justice Courts) handle civil claims up to $12,000. Filing fees are $50 to $100. Cases are typically heard within 30 to 60 days of filing. For amounts between $12,000 and $15,000, the plaintiff can waive the excess and file in Magisterial Court. For amounts above $12,000 where the plaintiff wants to recover the full amount, the case moves to the Court of Common Pleas, where attorney representation is practical.

The Pennsylvania statute of limitations on contracts under seal (written and signed) is 4 years (42 Pa. C.S. §5525(a)(8)). For most written service contracts -- signed proposals, work orders, or invoices acknowledging terms -- the 4-year limit applies. Oral contracts have a 2-year limit (42 Pa. C.S. §5524(3)). Pennsylvania courts have been fairly consistent in applying the 4-year window, and any invoice older than 4 years from the date payment was due cannot be collected through litigation.