Sued by Citibank / Citi in Louisiana? 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 Louisiana, the statute of limitations for credit card debt is 3 years. If your last payment was more than 3 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.

Louisiana Wage Garnishment Exemptions

Federal limits apply. Head of household claiming dependents may get additional exemptions.

Louisiana Unfair Trade Practices and Consumer Protection Law

In addition to the federal FDCPA, Louisiana's Louisiana Unfair Trade Practices and Consumer Protection Law may provide additional protections and remedies against Citibank / Citi's collection practices.

Louisiana Court System

Small claims limit varies by parish. City and district courts handle civil cases. Filing fees in Louisiana typically range $50-$250.

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 to respond in Louisiana?

Only 15 days. This is one of the shortest deadlines — act immediately.

What is the SOL in Louisiana?

3 years for open accounts and credit cards. 10 years for written contracts (promissory notes).

Can they garnish wages?

Yes. Federal limits apply.

What is unique about Louisiana law?

Louisiana is based on civil law (not common law like other states). Some legal procedures differ from other states.

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

Most credit-card and open-account debt in Louisiana is governed by a 3-year liberative prescription under La. Civ. Code art. 3494. That clock generally runs from the date of last activity or last payment on the account. Debt based on a signed written contract (some installment loans, promissory notes) can be subject to a 10-year prescription under art. 3499, but routine revolving credit-card accounts fall under the 3-year rule. Once prescription runs, the debt is unenforceable in court if you raise the defense. Prescription is not automatic, though - you have to plead it as an affirmative defense in your answer or it can be waived. Making a partial payment, signing a written acknowledgment, or agreeing to a new payment plan can interrupt or restart prescription, so do not promise to pay or send money on an old debt without first confirming the dates. If a collector sues on a debt that is past its prescription period, that suit itself may violate the FDCPA.

Can a debt collector garnish my wages in Louisiana?

Yes, but only after suing you, winning a judgment, and obtaining a garnishment order from the court. Louisiana has one of the more protective wage-garnishment statutes in the country. Under La. R.S. 13:3881, a collector can take only 25% of your disposable earnings, meaning 75% of your wages after taxes and required withholdings are exempt. Federal law (15 U.S.C. § 1673) sets the same 25% cap, so Louisiana lines up with the federal floor. Certain income is fully protected: Social Security, SSI, VA benefits, unemployment, and most public assistance cannot be garnished for ordinary consumer debt. If a creditor freezes your bank account, you can claim those exemptions, but you typically have to act fast - file a claim of exemption with the court that issued the garnishment, usually within a short window after service. Talk to a Louisiana consumer attorney before any wages are taken if you can.

Does Louisiana have a state little-FDCPA?

Not in the comprehensive way states like Maryland, Massachusetts, or California do. Louisiana has not enacted a standalone state Fair Debt Collection Practices Act covering collectors the way the federal FDCPA does. Instead, abusive collection conduct is generally pursued under the Louisiana Unfair Trade Practices and Consumer Protection Law (LUTPA), La. R.S. 51:1401 et seq., which prohibits "unfair or deceptive acts or practices in the conduct of any trade or commerce." Louisiana courts have applied LUTPA to debt-collection misconduct in some cases. The practical effect is that most state-court actions against abusive collectors in Louisiana are still filed under the federal FDCPA, sometimes layered with LUTPA claims for added remedies. The federal FDCPA carries statutory damages up to $1,000 per case plus actual damages and attorney's fees under 15 U.S.C. § 1692k, which is usually the workhorse claim.

What does it cost to defend a debt collection lawsuit in Louisiana?

Many Louisiana consumer attorneys handle FDCPA defense on a contingency-style or fee-shifting basis, because the federal FDCPA (15 U.S.C. § 1692k) and LUTPA both allow a prevailing consumer to recover attorney's fees from the collector. If you have valid defenses or counterclaims - prescription, lack of standing by a debt buyer, validation failures, abusive conduct - an attorney may take your case without charging you out of pocket, intending to collect fees from the collector if you win. For simpler defenses, you may be able to file your own answer pleading prescription and lack of standing without a lawyer, especially in city or parish courts. Many parishes also have self-help resources through clerk's offices. Avoid ignoring the suit at all costs: a default judgment in Louisiana can lead to garnishment, bank seizure, and seizure of non-exempt property, and judgments in Louisiana are good for 10 years under La. R.S. 13:3068, renewable.

Can a Louisiana debt collector contact me at work?

Federal FDCPA § 1692c(a)(3) prohibits a collector from calling you at work if the collector knows or has reason to know your employer prohibits such calls. You do not need to put it in writing initially - a clear oral statement is enough to trigger the rule once the collector has been told. To create a paper trail, send the collector a short written notice by mail or email saying your employer does not allow personal calls and instructing them to stop contacting you at work. Keep a copy. After they receive that notice, any further work calls are a violation worth up to $1,000 in statutory damages plus actual damages and attorney's fees under § 1692k. You can also use FDCPA § 1692c(c) to demand the collector cease all communication with you, though that does not stop them from suing - it only stops phone calls and letters. Louisiana's LUTPA may layer additional remedies on top.