Sued by JPMorgan Chase Bank in Hawaii? 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 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 JPMorgan Chase Bank'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.

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 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.