Sued by IC System in Hawaii? Here's What to Do Next
Hawaii RESPONSE DEADLINE
20 Days
from the date you were served
STATUTE OF LIMITATIONS
6 Years
for typical IC System debts in HI
WAGE GARNISHMENT
Allowed — up to 25%
IC System in Hawaii
IC System files fewer cases in Hawaii than in larger states — the CFPB Consumer Complaint Database shows fewer than 10 Hawaii complaints against IC System in the last 24 months. The legal playbook is the same: IC System must still prove they own the debt, the amount they claim is correct, and the 6-year Hawaii statute of limitations has not run.
About IC System
IC System is one of the oldest and largest debt collection agencies in the United States, founded in 1938. They collect on behalf of healthcare providers, utilities, telecommunications companies, and financial institutions. IC System has a significant number of CFPB complaints and has been involved in FDCPA litigation for practices including reporting disputed debts and pursuing debts consumers do not owe.
Type: Collection Agency. Common debt types: medical, utility, telecom, credit card.
CFPB Enforcement History
I.C. System, Inc. is a third-party debt collector based in St. Paul, Minnesota that has operated since 1938 and is one of the highest-volume collectors in the country. We could not identify a public CFPB consent order or formal CFPB enforcement action against I.C. System, but the company has been named in numerous private FDCPA lawsuits and the CFPB's complaint database contains thousands of consumer complaints, primarily about attempts to collect debt the consumer says is not owed.
Hawaii-Specific Defenses Against IC System
Statute of Limitations Defense
In Hawaii, 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.
Hawaii Wage Garnishment Exemptions
First $100 per week is exempt. Standard federal limits also apply.
Hawaii Unfair or Deceptive Acts or Practices (HRS 480)
In addition to the federal FDCPA, Hawaii's Hawaii Unfair or Deceptive Acts or Practices (HRS 480) may provide additional protections and remedies against IC System's collection practices.
Hawaii Court System
Small claims limit $5,000. District court for larger civil cases. Filing fees in Hawaii typically range $50-$250.
Common FDCPA Violations by IC System
- Collecting on medical debts that should have been covered by insurance
- Reporting medical collection accounts to credit bureaus before the required waiting period
- Failing to properly validate debts when disputed in writing
- Continuing collection on debts that were paid or settled
- Misidentifying the original creditor in collection communications
Statute of Limitations in Hawaii
| Debt Type | SOL (Years) |
|---|---|
| Credit Card | 6 |
| Medical | 6 |
| Auto | 6 |
| Personal Loan | 6 |
| Written Contract | 6 |
| Oral Contract | 6 |
Frequently Asked Questions
Who is IC System?
IC System is one of the largest third-party debt collection agencies in the U.S. They have been in business since 1938 and collect debts for healthcare providers, utilities, and other companies.
IC System is collecting a medical debt — is this right?
Request validation and check with your insurance company. Many medical debts collected by IC System should have been covered by insurance or were billed incorrectly by the provider.
Can IC System affect my credit score?
Yes, IC System reports to all three major credit bureaus. However, medical debts have special protections — paid medical debts must be removed, and new medical debts cannot be reported for one year.
Should I pay IC System?
Do not pay without verifying the debt first. Request written validation, check if the amount is correct, and determine if the statute of limitations has expired before making any payment.
How long do I have to respond in Hawaii?
20 days from service to file your Answer.
What is the SOL in Hawaii?
6 years for all contract types.
Can they garnish my wages in Hawaii?
Yes, but the first $100 per week is exempt. Federal limits also apply.
Where are debt cases filed in Hawaii?
Small claims for up to $5,000. District court for larger civil claims.
How long can a debt collector sue me on a Hawaii credit-card debt?
Hawaii's statute of limitations is six years for both written and oral contracts under HRS § 657-1, which is one of the longer limits in the country. The clock starts running on the date of the last payment or the date the account was charged off, whichever is later for most credit-card accounts. If you are sued after six years, statute of limitations is an affirmative defense you must plead in your answer under Hawaii Rules of Civil Procedure Rule 8(c), or you waive it. Filing suit on a time-barred debt can also support an unfair-practices counterclaim under HRS § 480-2 and a federal FDCPA claim under 15 U.S.C. § 1692e(2) for misrepresenting the legal status of the debt. Partial payment or written acknowledgment can restart the clock under HRS § 657-15, so be careful before saying anything in writing or sending any amount.
What are my wage-garnishment rights as a Hawaii employee?
Hawaii follows federal Consumer Credit Protection Act limits at 15 U.S.C. § 1673, allowing creditors to garnish the lesser of 25 percent of disposable earnings or the amount by which weekly disposable earnings exceed 30 times the federal minimum wage. Hawaii's wage-garnishment statute at HRS § 652-1 also limits the percentage that can be garnished based on income brackets and provides additional protection for low earners. Social Security, SSI, VA benefits, unemployment, workers compensation, and most retirement income are exempt under federal law and HRS § 651-121 et seq. You raise an exemption by filing a claim with the court promptly after the wage assignment is served on your employer. Even after a judgment is entered, your employer cannot fire you because of one garnishment under federal law at 15 U.S.C. § 1674.
Is the debt collector contacting me licensed to operate in Hawaii?
Under HRS Chapter 443B, anyone collecting consumer debts in Hawaii must be licensed as a collection agency through the Department of Commerce and Consumer Affairs. HRS § 443B-19 makes unlicensed collection activity unlawful, and consumers have argued in Hawaii state and federal courts that unlicensed collectors cannot sue. You can check whether a collector is licensed by searching the DCCA Professional and Vocational Licensing database at https://cca.hawaii.gov/pvl. If a collector is not licensed, you can raise it as a defense in any lawsuit they bring and can complain to the Office of Consumer Protection at 1-844-808-3222. Combining a licensing challenge with a federal FDCPA claim under 15 U.S.C. § 1692e(5) for threatening unlawful action is a common defense strategy.
Can a Hawaii debt collector levy on my bank account?
After a creditor obtains a judgment in Hawaii, they can apply for a writ of execution under HRS § 651-31 directing the sheriff to garnish bank accounts or seize other personal property. The bank will freeze funds up to the judgment amount once the writ is served. Funds traceable to Social Security, SSI, VA benefits, unemployment compensation, and child support are exempt under federal law and HRS § 651-121. Most retirement accounts under HRS § 651-124 and a homestead-related personal-property exemption under HRS § 651-121 are also protected. You preserve these protections by filing a claim of exemption with the court promptly after the bank notifies you that funds were frozen. Most banks will hold the funds for a short window before turning them over, which gives you time to file.
What do I do if I am sued in Hawaii district court for a credit-card debt?
If you are sued in Hawaii district court for a claim under $40,000, you must file a written answer or appear at the return date listed on the summons under District Court Rules of Civil Procedure Rule 4. Failing to appear or answer can result in default judgment under Rule 55. In your answer, you should deny the allegations you do not know to be true, demand strict proof of the debt and any assignment, and assert affirmative defenses including statute of limitations under HRS § 657-1, lack of standing of the assignee, unlicensed-collection activity under HRS § 443B-19, and any HRS § 480-2 or FDCPA counterclaim. Demand the original cardholder agreement and a full chain of assignment in discovery. Hawaii district court forms are available through the Hawaii State Judiciary website.
Sued by IC System in Another State?
IC System files cases nationwide. Select your state for the response deadline, statute of limitations, and state-specific defenses.
Sued by a Different Collector in Hawaii?
The 20-day Hawaii response deadline applies no matter who sued you. Pick the creditor on your summons for creditor-specific defenses.
This page summarizes public information from the CFPB Consumer Complaint Database, CFPB enforcement records, and Hawaii state law. It is not legal advice. Statutes and court rules change — consult a licensed attorney in Hawaii for guidance on your specific case.
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