Sued by JPMorgan Chase Bank in Nebraska? 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 Nebraska, the statute of limitations for credit card debt is 5 years. If your last payment was more than 5 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.

Nebraska Wage Garnishment Exemptions

Greater of 75% of disposable earnings or 30x federal minimum wage exempt. Head of household gets 85% exemption.

Nebraska Consumer Protection Act

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

Nebraska Court System

Small claims limit $3,600. County court handles most civil cases up to $57,000. Filing fees in Nebraska typically range $25-$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 to respond in Nebraska?

30 days from service.

What is the SOL in Nebraska?

5 years for written contracts. 4 years for oral contracts.

Can wages be garnished?

Yes, but head of household may get 85% exemption.

Where are cases filed?

County court handles most consumer debt cases.

How long can a creditor sue me on a credit card or other debt in Nebraska?

Nebraska's statute of limitations is five years on written contracts (Neb. Rev. Stat. § 25-205) and four years on oral contracts and accounts (§ 25-206). Most credit-card and store-card agreements are treated as written contracts, so the five-year period typically applies. The clock generally begins running from the date of last payment or the date of default, depending on the contract language. After the statute has run, the debt is time-barred and you have a complete defense to a lawsuit, but you must raise it as an affirmative defense in your answer to the complaint. A time-barred debt remains a debt the collector can ask you to pay voluntarily, but the collector cannot lawfully sue, threaten suit, or imply that suit is still available. Be careful about partial payments or written acknowledgment of an old debt; in some circumstances Nebraska law treats these as restarting the clock. If you are unsure of the date of last payment, request validation under the FDCPA and pull your credit reports for the original charge-off date.

If I am a head of household in Nebraska, how much can be garnished from my wages?

Nebraska law gives heads of household stronger wage-garnishment protection than the federal minimum. Under Neb. Rev. Stat. § 25-1558, if you are the head of a family, the maximum garnishment is 15 percent of disposable earnings, meaning you keep 85 percent. For non-head-of-household earners, the limit follows the federal cap of 25 percent of disposable earnings or the amount above 30 times the federal minimum wage, whichever is less. Disposable earnings means earnings remaining after legally required deductions. To claim the head-of-household exemption you typically need to file an exemption claim with the court after garnishment is served and provide proof such as a tax return showing a dependent or other documentation that you provide more than half the support for someone in your household. Federal benefits including Social Security, SSI, VA, and most pensions are fully exempt from garnishment regardless of head-of-household status.

Is the collection agency suing me registered to operate in Nebraska?

Yes, third-party collection agencies and most debt buyers operating in Nebraska are required to register and post a bond under the Nebraska Collection Agency Act, Neb. Rev. Stat. § 45-601 et seq. Registration is administered through the Nebraska Secretary of State and the relevant licensing body. You can request verification or search the public registration list to confirm whether the entity suing you is currently registered. If the collector or debt buyer is not registered at the time it sent collection letters or filed suit, that is a strong defense and can also support a counterclaim under the Nebraska Consumer Protection Act. Even where a collector is registered, the bond requirement gives consumers a potential additional source of recovery if a judgment for damages is obtained. Always check registration first; it is one of the quickest ways to find leverage in a Nebraska collection case.

What does the Nebraska Consumer Protection Act add to my federal FDCPA rights?

The federal FDCPA, 15 U.S.C. §§ 1692-1692p, regulates third-party debt collectors and debt buyers but generally does not reach the original creditor. The Nebraska Consumer Protection Act and the Uniform Deceptive Trade Practices Act, Neb. Rev. Stat. § 87-301 et seq. and § 59-1601 et seq., are broader and prohibit deceptive or unfair conduct by any business, including original creditors. Available remedies include actual damages, injunctive relief, attorney fees, and in some cases treble or enhanced damages. The Consumer Protection Division within the Nebraska Attorney General's office accepts written complaints and investigates patterns of abuse. In practice this means if a bank or hospital itself misrepresents the amount owed, threatens improper action, or fails to honor a written dispute, you may have a state-law claim even when the FDCPA does not directly apply. Combining state and federal claims can substantially improve settlement value.

What should I do if a Nebraska collector threatens to garnish my Social Security?

Social Security and most other federal benefits are protected from garnishment by private creditors under 42 U.S.C. § 407 and federal Treasury Rule 31 CFR Part 212. A collector who threatens to take your Social Security to pay a credit-card or medical debt is making a misleading statement and likely violating the FDCPA, 15 U.S.C. § 1692e. If those benefits are deposited into your bank account by direct deposit, banks are required to automatically protect up to two months of those benefits when a garnishment order is received. To preserve that protection, do not commingle Social Security with substantial amounts of other money in the same account, and keep records showing the direct-deposit source. If the bank freezes your account anyway, file an exemption claim with the court and notify the bank in writing. Document the collector's threats, save voicemails and letters, and consider filing a complaint with the Nebraska Attorney General's Consumer Protection Division and the CFPB.