Sued by Citibank / Citi in Connecticut? Here's What to Do Next

2016 · consent order

$8M total ($4.89M consumer refunds + $3M CFPB civil money penalty), plus separate $11M consumer refund + ~$34M debt forgiven for ~7,000 NJ consumers in companion action against Citi's debt collection law firms

CFPB consent order finding Citibank sold credit card debt with inflated annual interest rates that buyers then used in court filings, and failed to promptly forward consumer payments to debt buyers. A companion action required Citi and two of its NJ debt collection law firms to refund $11M and stop collecting on ~$34M in debt tied to falsified court documents.

CFPB source

Statute of Limitations Defense

In Connecticut, 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.

Connecticut Wage Garnishment Exemptions

Federal limits apply. Connecticut also provides additional protections for low-income wage earners.

Connecticut Unfair Trade Practices Act (CUTPA)

In addition to the federal FDCPA, Connecticut's Connecticut Unfair Trade Practices Act (CUTPA) may provide additional protections and remedies against Citibank / Citi's collection practices.

Connecticut Court System

Small claims limit $5,000. Superior court handles larger civil cases. Filing fees in Connecticut typically range $80-$360.

Does Citibank sue for unpaid credit cards?

Yes. Citibank sues for unpaid balances on Citi-branded cards, store cards they issue, and other credit products. They use a network of collection law firms across the country.

What if I can't afford to pay Citibank?

Filing your Answer is free or low-cost and protects you from a default judgment. You may also negotiate a settlement for less than the full balance. An active defense gives you leverage.

Can Citibank garnish my paycheck?

Only after obtaining a court judgment. States like Texas, Pennsylvania, North Carolina, and South Carolina protect wages from garnishment for consumer debts.

What documentation does Citibank need to win?

Citibank must prove you had an account, the terms of the agreement, that you defaulted, and the exact amount owed including all fees and interest. Challenge each element they cannot prove.

How long do I have to respond in Connecticut?

Only 15 days from service. This is one of the shortest deadlines in the country — act immediately.

What is the SOL for credit card debt in Connecticut?

6 years for written contracts and credit card debts.

Can they garnish my wages in Connecticut?

Yes. Federal garnishment limits apply, with additional state protections for low-income earners.

What is CUTPA?

The Connecticut Unfair Trade Practices Act protects consumers against unfair and deceptive business practices, including debt collection.

How does the Connecticut Unfair Trade Practices Act protect me from debt collectors?

The Connecticut Unfair Trade Practices Act (CUTPA), Conn. Gen. Stat. §§ 42-110a et seq., prohibits unfair or deceptive acts in trade or commerce, and Connecticut courts have applied it to abusive debt collection. CUTPA's remedies are stronger than the federal FDCPA in several ways: it allows actual damages, punitive damages, and attorney's fees under Conn. Gen. Stat. § 42-110g. Unlike the FDCPA (15 U.S.C. §§ 1692-1692p), which only reaches third-party collectors, CUTPA applies to both original creditors and third-party collectors. The same facts that support an FDCPA counterclaim under § 1692e (false representations), § 1692f (unfair practices), or § 1692g (validation violations) often support a parallel CUTPA claim. CUTPA also reaches systemic deceptive practices like misrepresenting the amount owed or filing suit without proper documentation, which is common in debt-buyer cases. Before suing under CUTPA, you generally need to demonstrate damages, but harassment or improper collection can satisfy that requirement.

Are debt collectors required to be licensed in Connecticut?

Yes. Conn. Gen. Stat. §§ 36a-800 to 36a-814 require any consumer collection agency operating in Connecticut to hold a current license from the Connecticut Department of Banking. The licensing requirement applies to debt buyers, third-party collectors, and any entity that regularly collects consumer debts. An unlicensed collector who attempts to collect or files suit violates the licensing statute and triggers a separate violation under 15 U.S.C. § 1692e(9) of the federal FDCPA for misrepresenting the right to collect. If you are sued by a debt buyer, verify their license status on the Connecticut Department of Banking online portal. Lack of licensing is a complete defense, and you can move to dismiss the case. It also supports a parallel claim under the Connecticut Unfair Trade Practices Act, Conn. Gen. Stat. §§ 42-110a et seq., with punitive damages and attorney's fees.

How much of my wages can be garnished in Connecticut?

Connecticut is somewhat more protective than the federal floor. Under Conn. Gen. Stat. § 52-361a, the maximum wage garnishment for most consumer debts is the lesser of 25% of weekly disposable earnings or the amount by which weekly disposable earnings exceed 40 times the higher of the state or federal minimum wage. With Connecticut's 2026 state minimum wage of $16.35, the protected weekly floor is substantially higher than the federal 30x minimum wage floor under 15 U.S.C. § 1673. To assert the exemption, file a written claim of exemption with the issuing court. Federal benefits including Social Security, SSI, and VA payments remain fully protected from garnishment under 42 U.S.C. § 407. Connecticut also exempts certain retirement and pension benefits under Conn. Gen. Stat. § 52-321a, and the first two months of federally protected deposits to a bank account are automatically protected from levy under federal Treasury rules.

What is the statute of limitations on credit card debt in Connecticut?

Connecticut applies a six-year statute of limitations to actions on simple contracts (including credit cards) under Conn. Gen. Stat. § 52-576. The clock typically begins on the date of default or last payment. Once six years pass, the debt is time-barred. A collector who sues anyway violates 15 U.S.C. § 1692e(2) and § 1692f(1) of the federal FDCPA and Conn. Gen. Stat. §§ 36a-645 et seq. Raise the statute of limitations as an affirmative defense in your Answer along with an FDCPA counterclaim for up to $1,000 in statutory damages, actual damages, and attorney's fees under § 1692k. Connecticut courts have held that a partial payment within the SOL period can restart the clock under Conn. Gen. Stat. § 52-580, so be careful not to make payments on old debts without first confirming whether the SOL has expired.

How do I file an Answer in Connecticut superior court?

Connecticut superior court has unique procedural steps for consumer debt cases. After service, your first filing is an Appearance (Form JD-CL-12), which must be filed within two days of the Return Date listed on the summons. Failure to appear allows a default judgment. After your Appearance, the formal Answer is generally due within 30 days under Conn. Practice Book § 10-8. Your Answer should deny the allegations you contest and raise affirmative defenses, including statute of limitations under Conn. Gen. Stat. § 52-576, lack of standing (especially for debt buyers), failure to validate under 15 U.S.C. § 1692g, and any CUTPA or state FDCPA violations. Connecticut also requires plaintiffs in collection suits to attach the contract or other proof of the debt. If the complaint is missing required documentation, you can file a request to revise or a motion to strike. The Connecticut Judicial Branch provides free online resources and forms.