Sued by JPMorgan Chase Bank in Pennsylvania? 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 Pennsylvania, the statute of limitations for credit card debt is 4 years. If your last payment was more than 4 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.

Pennsylvania Fair Credit Extension Uniformity Act / PA Unfair Trade Practices Act

In addition to the federal FDCPA, Pennsylvania's Pennsylvania Fair Credit Extension Uniformity Act / PA Unfair Trade Practices Act may provide additional protections and remedies against JPMorgan Chase Bank's collection practices.

Pennsylvania Court System

Magisterial district court up to $12,000. Court of common pleas for larger amounts. Filing fees in Pennsylvania typically range $45-$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 Pennsylvania?

20 days from service to file your Answer.

What is the SOL in Pennsylvania?

4 years for all contract types including credit cards.

Can they garnish my wages in Pennsylvania?

No. Pennsylvania prohibits wage garnishment for most consumer debts. They can still levy bank accounts and place liens on property after getting a judgment.

What makes PA unique for debt defense?

The combination of a 4-year SOL and no wage garnishment makes Pennsylvania one of the most consumer-friendly states for debt defense.

Where are debt cases filed in PA?

Magisterial district court for smaller cases (up to $12,000). Court of common pleas for larger amounts.

Can a credit card company garnish my wages in Pennsylvania?

Almost never. Pennsylvania is one of the most consumer-protective states in the country on this issue. Under 42 Pa. C.S. § 8127, wages and salary earned for personal services are generally exempt from execution to satisfy a money judgment from an ordinary creditor like a credit card company or medical provider. The exceptions are narrow and include support orders, certain back rent for a residential lease, taxes, criminal restitution, and federal student loans. A debt buyer or original creditor who wins a Pennsylvania state court judgment on a credit card debt cannot use that judgment to garnish your paycheck. They can still try to levy on bank accounts, place liens on real property, and use the judgment as leverage. If a collector threatens to garnish your wages in Pennsylvania over a credit card or medical debt, that threat itself may violate the federal FDCPA and the FCEUA, since the collector cannot lawfully follow through. Get the threat in writing if possible and save it for a counterclaim or complaint.

What is the Pennsylvania FCEUA and how is it different from the FDCPA?

The Fair Credit Extension Uniformity Act at 73 P.S. § 2270.1 et seq. is Pennsylvania's state version of the federal FDCPA, with one major improvement for consumers. The federal FDCPA only applies to third-party debt collectors and debt buyers, not to original creditors collecting their own debts. The FCEUA expressly applies to creditors as well as collectors, which means if your original bank is the one making the abusive calls or false statements, you still have a state law claim even though federal FDCPA may not reach them. The FCEUA also makes any violation of its provisions an unfair or deceptive act under the Unfair Trade Practices and Consumer Protection Law (UTPCPL). The UTPCPL allows a private right of action for the greater of actual damages or $100, plus attorney fees, and in cases of willful conduct, treble damages. Stacking FCEUA, UTPCPL, and federal FDCPA claims can produce a meaningful counterclaim in a debt buyer suit.

How does a Magisterial District Judge case work in Pennsylvania for a debt collection lawsuit?

Most Pennsylvania consumer debt suits under $12,000 are filed before a Magisterial District Judge, the local-level court formerly called the District Justice. The process is informal, designed for self-represented litigants. You will receive a complaint and a hearing notice giving you a specific date and time. You do not need to file a written answer in advance; you appear, present your side, and the judge rules. Bring all documents you have: the complaint, any letters from the collector, payment records, and any communications. Make the plaintiff prove they own the debt by demanding to see the bill of sale and chain of assignments. If you lose at the MDJ level, you can file an appeal to the Court of Common Pleas within 30 days, which essentially restarts the case in a more formal court with full discovery and motion practice. The appeal is a do-over, not a review of the MDJ decision. Many debt buyers will not follow the case up on appeal, so an appeal can be a powerful tool.

I have an old judgment from a Pennsylvania court. How long does it last?

A Pennsylvania judgment is generally valid for five years from the date of entry and can be revived for additional five-year periods under 42 Pa. C.S. § 5526, potentially extending the judgment for many years. A judgment can be enforced by various means short of wage garnishment, including bank levies, real estate liens, and personal property executions. If your judgment is approaching the five-year mark, the creditor must take affirmative steps to revive it, and they often miss that deadline. If a judgment has not been revived in time, the creditor's ability to execute on it is significantly weakened. If you are dealing with an old judgment, the first step is to pull a current docket from the court website and confirm the entry date and any revivals. Sometimes the creditor or debt buyer is willing to settle a stale judgment for cents on the dollar because they fear losing enforceability. Consult a consumer attorney before paying or signing anything that might be construed as an acknowledgment that restarts the clock.

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

Pennsylvania applies a four-year statute of limitations to actions on credit card and other contract debts under 42 Pa. C.S. § 5525. The clock generally starts on the date of the first missed payment that was never cured. Once four years have passed without a payment or written acknowledgment, the debt is generally time-barred. For installment loans, courts sometimes apply the four-year period to each missed installment, although most lenders accelerate the full balance once the loan is in default, which can start the clock running on the entire balance. Making even a small partial payment or signing a new agreement on an old debt can restart the clock under Pennsylvania law, so do not pay anything on an old debt without legal advice. If a debt buyer files suit in Pennsylvania on a credit card debt and the last payment was more than four years ago, raise the statute of limitations as an affirmative defense in your answer. Pennsylvania courts routinely dismiss time-barred debt buyer suits when the defense is properly raised.