Sued by Bank of America in Utah? Here's What to Do Next

2014 · consent order

$772M total ($727M consumer relief to ~2.9M consumers + $20M CFPB penalty + $25M OCC penalty)

CFPB consent order finding Bank of America deceptively marketed credit card payment-protection and identity-protection add-on products ("Credit Protection Plus," "Credit Protection Deluxe," "Privacy Guard," "Privacy Source," "Privacy Assist") and illegally charged approximately 1.9M consumer accounts for credit monitoring services they were not receiving.

CFPB source

2022 · consent order

$100M consumer relief + $10M CFPB civil money penalty (garnishment portion)

CFPB consent order finding Bank of America engaged in unfair garnishment practices, including responding to and processing garnishment notices against out-of-state deposit accounts in violation of state law and failing to apply state exemptions to consumers' deposit accounts after receiving garnishment notices.

CFPB source

Statute of Limitations Defense

In Utah, the statute of limitations for credit card debt is 6 years. If your last payment was more than 6 years ago, the debt is time-barred. Verify when your last payment or account activity occurred and raise the SOL defense in your Answer if applicable.

Challenge the Amount

Demand a complete accounting from the original creditor's last statement through the current claimed balance. Any unauthorized fees, post-charge-off interest, or collection costs not in the original agreement should be disputed line by line.

Utah Wage Garnishment Exemptions

Federal limits apply.

Utah Consumer Sales Practices Act

In addition to the federal FDCPA, Utah's Utah Consumer Sales Practices Act may provide additional protections and remedies against Bank of America's collection practices.

Utah Court System

Small claims limit $11,000. District court handles larger civil cases. Filing fees in Utah typically range $50-$300.

Does Bank of America sue for credit card debt?

Yes. Bank of America files lawsuits for unpaid credit card balances through its network of collection attorneys across the country.

What if I already paid Bank of America?

If you have proof of payment, this is a complete defense. Gather all payment records, settlement letters, and confirmation numbers to present in your Answer.

Can Bank of America freeze my bank account?

Only after obtaining a court judgment. If you bank at Bank of America and they obtain a judgment, they may have enhanced ability to levy your account through the right of offset.

Should I close my Bank of America account if they sue me?

Consider moving funds to a different bank to protect against potential right-of-offset if Bank of America obtains a judgment. Consult with an attorney about asset protection strategies.

How long to respond in Utah?

21 days from service.

What is the SOL in Utah?

6 years for written contracts. 4 years for oral contracts.

Can wages be garnished?

Yes. Federal limits apply.

Where are cases filed?

Small claims up to $11,000. District court for larger amounts.

Is a debt collector required to be registered in Utah?

Yes. The Utah Collection Agency Registration Act, Utah Code § 12-1-1 et seq., requires collection agencies to register with the Utah Department of Commerce, Division of Corporations and Commercial Code, and to post a $10,000 surety bond before collecting consumer debts in Utah. You can verify registration using the Division's online business search at corporations.utah.gov. If a collector contacting or suing you is not properly registered, that itself can be raised as a defense and can support a complaint to the Division of Consumer Protection and the Attorney General. The registration requirement applies to third-party collection agencies and debt buyers collecting in their own name; it does not apply to original creditors collecting their own debts, attorneys collecting in the course of legal practice, or certain regulated financial institutions. The bond is meant to provide a source of recovery if the collector causes consumer harm through unlawful practices.

How much of my wages can a debt collector take in Utah?

After a judgment, Utah follows the federal garnishment cap under the Consumer Credit Protection Act, codified for Utah at Utah Code § 70C-7-103. A judgment creditor can take the lesser of 25% of your disposable earnings or the amount by which your weekly disposable earnings exceed 30 times the federal minimum wage. Disposable earnings means what is left after legally required deductions like federal and state taxes and Social Security, not voluntary deductions. Utah does not provide enhanced wage protections beyond the federal floor. Child support, taxes, and federal student loans can be garnished at higher amounts under federal law. Utah law also provides a mechanism for a judgment debtor to claim hardship and request reduction of the garnishment by motion. If a collector is taking more than 25% of disposable earnings, you can file a motion to release a portion of the garnishment by showing it would cause undue hardship.

What is the statute of limitations on debt in Utah?

Utah's general statute of limitations on a written contract, which includes most credit card cardholder agreements, is six years under Utah Code § 78B-2-309. For oral contracts and open accounts, the limitations period is four years. For installment loans, the clock generally starts ticking on each missed payment, although most courts treat the full balance as due once the lender accelerates the loan. For out-of-state creditors, Utah has a borrowing statute, Utah Code § 78B-2-103, that applies the shorter of Utah's limitations period or the period of the state where the cause of action accrued. If you are sued on a debt past the limitations period, you must raise statute of limitations as an affirmative defense in your answer or you will waive it. Making a payment or signing a new written agreement on an old debt can restart the clock under Utah law, so do not pay or sign anything on a suspected time-barred debt without legal advice.

I was sued in Utah small claims court. What should I expect?

Utah small claims court, under Utah Code § 78A-8-102, handles civil cases up to $11,000. You will be given a specific court date in the summons (affidavit and order), not a deadline to file a written answer like in district court. Show up. If you fail to appear, the court will likely enter a default judgment for the collector. Bring any documents you have, including the original contract if available, payment records, and any letters from the collector. Make the debt buyer prove they own the debt by asking the judge to require them to produce the bill of sale, the chain of assignments from the original creditor to the current plaintiff, and the original cardholder agreement. Many small claims debt buyer cases fall apart when the plaintiff appears with only a one-page affidavit and no underlying records. You can also raise affirmative defenses orally, including statute of limitations, failure to register as a collection agency, and lack of standing. Either side can appeal a small claims decision to district court within 30 days, where the case is heard fresh.

Can I sue a debt collector in Utah for violations?

Yes. The federal Fair Debt Collection Practices Act, 15 U.S.C. § 1692k, allows you to sue an abusive third-party debt collector for actual damages, statutory damages up to $1,000 per lawsuit, and attorney fees and costs. Common violations include calling repeatedly, calling at unreasonable hours (before 8 a.m. or after 9 p.m. local time), threatening lawsuits the collector does not intend to file, misrepresenting the amount of the debt, contacting third parties about your debt, and continuing to collect after a written cease and desist or a dispute. The Utah Consumer Sales Practices Act, Utah Code § 13-11, also provides a private right of action for deceptive and unconscionable practices in consumer transactions. Keep records of every call (date, time, what was said), every letter, and every voicemail. The one-year FDCPA statute of limitations runs from the date of the violation under § 1692k(d), so do not wait to consult a consumer protection lawyer if you suspect violations.