Sued by JPMorgan Chase Bank in Alaska? Here's What to Do Next

2015 · consent order

$216M+ total (at least $50M consumer refunds + $30M CFPB penalty + $30M OCC penalty + $106M state payments) plus permanent ban on collecting 528,000 consumer accounts

Joint CFPB and 47-state action finding Chase sold credit card debts that had already been settled, paid, discharged in bankruptcy, or identified as fraudulent, and used robo-signed sworn statements with inaccurate balances and account information to support more than 528,000 collection lawsuits. Chase was permanently barred from collecting on those 528,000 accounts.

CFPB source

Statute of Limitations Defense

In Alaska, 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.

Alaska Wage Garnishment Exemptions

Same as federal limit: lesser of 25% of disposable earnings or amount exceeding 30x minimum wage.

Alaska Unfair Trade Practices and Consumer Protection Act

In addition to the federal FDCPA, Alaska's Alaska Unfair Trade Practices and Consumer Protection Act may provide additional protections and remedies against JPMorgan Chase Bank's collection practices.

Alaska Court System

Small claims limit is $10,000. District court handles larger civil cases. Filing fees in Alaska typically range $75-$250.

Does Chase sue for credit card debt?

Yes. Chase is one of the most litigious credit card issuers and regularly sues for unpaid balances on all Chase card products including Sapphire, Freedom, and co-branded cards.

What if I was never properly served in a Chase lawsuit?

Improper service is a valid defense. If you were not personally served according to your state's rules, you can move to dismiss or vacate any default judgment entered against you.

Can I settle a Chase credit card lawsuit?

Chase sometimes settles, particularly after you file an Answer and show you will actively defend. Settlement amounts vary but can be significantly less than the full balance.

Does Chase sell debt to collectors?

Yes. Chase sells some defaulted accounts to debt buyers like LVNV Funding and Portfolio Recovery Associates. If a debt buyer sues you for a Chase debt, they must prove the chain of ownership.

How long do I have to respond to a debt lawsuit in Alaska?

You have 20 days from service to file your Answer.

What is the statute of limitations for credit card debt in Alaska?

3 years for open accounts like credit cards. 6 years for written contracts.

Can my wages be garnished in Alaska?

Yes. Up to 25% of disposable earnings after a court judgment.

What is Alaska's consumer protection law?

The Alaska Unfair Trade Practices and Consumer Protection Act provides protections against deceptive business practices.

How does Alaska's three-year statute of limitations on credit card debt work?

Alaska Stat. § 09.10.053 sets a three-year statute of limitations for actions on a contract or liability, including most credit card accounts treated as open accounts. The clock typically begins on the date of last payment or default. If the collector sues you more than three years after that date, the suit is time-barred and you should raise the statute of limitations as an affirmative defense in your Answer. Filing suit on a knowingly time-barred debt also violates 15 U.S.C. § 1692e(2) and § 1692f(1) of the federal FDCPA, which can support a counterclaim for $1,000 in statutory damages plus actual damages and attorney's fees under § 1692k. Be aware that a written promise to pay or a partial payment in certain circumstances can restart the clock, so do not acknowledge an old debt in writing or make a payment without first confirming whether the SOL has run.

Are all debt collectors required to be licensed in Alaska?

Yes. Alaska Stat. §§ 08.24.011-08.24.410 require collection agencies operating in the state to hold a current license from the Alaska Division of Corporations, Business and Professional Licensing. If a collector is suing or contacting you and is not licensed in Alaska, that is itself a defense and a potential violation under both state law and the federal FDCPA's prohibition on false representation of authority under 15 U.S.C. § 1692e(9). You can verify a collector's license status on the Division's online portal. Raise the lack of licensing in your Answer and ask the court to dismiss the suit. A collector who is not licensed in Alaska generally cannot maintain a collection action or recover a judgment, and continued attempts to collect from an unlicensed posture can support a UTPCPA claim under Alaska Stat. § 45.50.471 with treble damages.

Can a collector garnish my Permanent Fund Dividend in Alaska?

The Alaska Permanent Fund Dividend (PFD) is partially protected, but not as fully as people sometimes assume. Under Alaska Stat. § 43.23.065, the PFD is exempt from levy and garnishment for most ordinary debts, except for specific obligations like child support, court-ordered restitution, and certain state debts. A typical credit card or medical debt collector cannot garnish your PFD if you properly claim the exemption. To preserve the exemption, file a claim with the court and the Permanent Fund Dividend Division promptly after notice. Wages remain subject to the federal 25% cap under 15 U.S.C. § 1673 plus Alaska's weekly disposable earnings floor of $473 under Alaska Stat. § 09.38.030. Federal benefits like Social Security, SSI, and VA payments are protected under 42 U.S.C. § 407 and should be kept in an account where they can be traced for the two-month bank-levy protection rule.

How do I respond to a debt lawsuit if I'm in a rural part of Alaska?

Alaska's court system operates statewide but venue is divided into four judicial districts. The federal FDCPA at 15 U.S.C. § 1692i requires the collector to sue you in the judicial district where you live or where you signed the original contract. If you live in a rural community, that means the suit should be in the district court covering your area, not Anchorage as a matter of convenience for the collector. You generally have 20 days from service to file a written Answer. Alaska courts accept filings by mail, fax, or through the TrueFiling electronic system, and the Alaska Court System provides free fillable Answer forms for unrepresented defendants. If you cannot appear in person, you can often appear telephonically; request that accommodation as soon as you file. Missing the deadline allows a default judgment and exposes you to wage garnishment and bank levies.

What is the Alaska Unfair Trade Practices Act and how does it apply to collectors?

The Alaska Unfair Trade Practices and Consumer Protection Act (Alaska Stat. §§ 45.50.471 et seq.) prohibits unfair or deceptive acts and practices in trade or commerce. Courts have applied it to debt collection conduct that is misleading or oppressive, including false threats, misrepresentation of debt amounts, and continued collection after a written cease-and-desist. Under Alaska Stat. § 45.50.531, a successful plaintiff recovers the greater of $500 or three times actual damages, plus attorney's fees and costs. The UTPCPA reaches conduct by both third-party debt collectors and, unlike the federal FDCPA, original creditors operating in trade or commerce. If you can document FDCPA-style violations such as harassment under 15 U.S.C. § 1692d, false statements under § 1692e, or unfair practices under § 1692f, the same facts often support a parallel UTPCPA counterclaim with treble damages.