Sued by Synchrony Bank in California? Here's What to Do Next

2014 · consent order

$228.5M total ($225M consumer relief + $3.5M CFPB civil money penalty)

CFPB consent order finding GE Capital Retail Bank (now Synchrony Bank) deceptively marketed credit card debt-cancellation and payment-protection add-on products, and excluded Spanish-speaking and Puerto Rico cardholders from debt-relief promotions offered to other delinquent customers in violation of the Equal Credit Opportunity Act.

CFPB source

Statute of Limitations Defense

In California, 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.

California Wage Garnishment Exemptions

Greater of 75% of disposable earnings or 40x California minimum wage is exempt. More protective than federal law.

Rosenthal Fair Debt Collection Practices Act (Cal. Civ. Code 1788)

In addition to the federal FDCPA, California's Rosenthal Fair Debt Collection Practices Act (Cal. Civ. Code 1788) may provide additional protections and remedies against Synchrony Bank's collection practices.

California Court System

Small claims limit $12,500. Unlimited civil for amounts over $35,000. Limited civil for $35,000 and under. Filing fees in California typically range $75-$435.

What store cards does Synchrony Bank issue?

Synchrony issues cards for Amazon Store Card, Walmart, Lowe's, Sam's Club, PayPal Credit, CareCredit, JCPenney, Gap, and many others. If you have a store-branded credit card, Synchrony is likely the issuer.

Can Synchrony sue me for a store card balance?

Yes. Synchrony regularly sues for unpaid store card and CareCredit balances. They may sue directly or assign the account to a collection law firm.

What if I was misled about CareCredit terms?

CareCredit promotional financing has been the subject of CFPB enforcement actions for deceptive practices. If you were misled about the terms, you may have a defense or counterclaim.

How long does Synchrony wait before suing?

Synchrony typically charges off accounts after about 180 days of non-payment. They may sue shortly after charge-off or sell the debt to a buyer who will sue.

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

30 days from personal service (or 35 if served by mail) to file your Answer with the court.

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

4 years under CCP 337 for obligations based on a written contract. 2 years for oral contracts.

What is the Rosenthal Act?

The Rosenthal Fair Debt Collection Practices Act extends FDCPA-like protections to original creditors in California, not just third-party collectors. This gives California consumers broader protection.

Can they garnish my wages in California?

Yes, but California is more protective than federal law. The greater of 75% of disposable earnings or 40 times the California state minimum wage is exempt from garnishment.

What courts handle debt cases in California?

Small claims for amounts up to $12,500, limited civil for up to $35,000, and unlimited civil for larger amounts.

What is the California Fair Debt Buyer Practices Act and how does it help me?

The California Fair Debt Buyer Practices Act, Cal. Civ. Code §§ 1788.50-1788.66, imposes strict requirements on debt buyers (companies that purchase charged-off debts and sue to collect). Under § 1788.58, the plaintiff debt buyer must attach to the complaint copies of the contract or other writing evidencing the original debt, the chain of assignment from the original creditor, and an itemized account statement showing how the balance was calculated. The plaintiff must also plead specific facts under § 1788.58, including the date of default, the original creditor's name, and the date of charge-off. Failure to comply is grounds for dismissal under § 1788.60. The FDBPA also provides for statutory damages up to $1,000 per action plus attorney's fees under § 1788.62. If you are sued by a debt buyer in California, check the complaint immediately for compliance and raise any deficiencies in your Answer or by demurrer.

How is the Rosenthal Act different from the federal FDCPA?

The federal FDCPA at 15 U.S.C. §§ 1692-1692p only covers third-party debt collectors, not the original creditor that issued the debt. California's Rosenthal Fair Debt Collection Practices Act (Cal. Civ. Code §§ 1788-1788.33) closes that gap by applying FDCPA-style rules to original creditors collecting their own debts. Cal. Civ. Code § 1788.17 incorporates most of the FDCPA's substantive prohibitions, so Rosenthal violations include false statements, harassment, validation failures, and collecting time-barred debts. Remedies under Cal. Civ. Code § 1788.30 include actual damages, statutory damages up to $1,000 per action, and attorney's fees. That means if Capital One or Discover (collecting their own accounts) violates the FDCPA-style rules, you have a Rosenthal claim even though the federal FDCPA would not reach them. Pair a Rosenthal counterclaim with an FDCPA claim under § 1692k whenever a third-party collector is involved.

Can a debt collector garnish my wages in California?

California has stronger wage protections than the federal floor. Under Cal. Civ. Proc. Code § 706.050, the maximum garnishment is the lesser of (a) 25% of weekly disposable earnings or (b) 50% of the amount by which weekly disposable earnings exceed 40 times the state minimum wage. With California's 2026 state minimum wage of $16.50, that translates to a substantial weekly exemption that is more protective than the federal 30x minimum-wage floor under 15 U.S.C. § 1673. To claim the exemption, file a Claim of Exemption (form EJ-160) with the levying officer and serve a copy on the creditor. The creditor must then file a Notice of Opposition or release the funds. Social Security, SSI, and VA benefits are fully protected under federal law (42 U.S.C. § 407) regardless of the state cap, and California also exempts unemployment, disability, and public assistance under Cal. Civ. Proc. Code § 704.080.

How long does a debt collector have to sue in California?

California's statute of limitations for written contracts, including credit cards, is four years under Cal. Code Civ. Proc. § 337. The clock starts on the date of default, typically the date of the last payment. Oral contracts have a two-year SOL under § 339. Once the four years run, the debt is time-barred, and a collector who sues anyway commits a violation of 15 U.S.C. § 1692e(2) and § 1692f(1) of the FDCPA, as well as Cal. Civ. Code § 1788.17 (Rosenthal Act). California also has unique protections under the Fair Debt Buyer Practices Act: a debt buyer who knowingly sues on time-barred debt can be liable for statutory damages plus attorney's fees. Critically, in California a partial payment or written acknowledgment can restart the SOL under Cal. Code Civ. Proc. § 360, so do not pay or sign anything on an old debt without understanding the consequences.

What is the meet-and-confer requirement in California debt cases?

California limited civil cases include several procedural protections for consumers. Under California Rules of Court, Rule 3.724, parties must meet and confer at least 30 days before the initial case management conference to discuss the case, settlement options, and discovery. For debt collection cases under Cal. Civ. Code §§ 1788.50-1788.66, the plaintiff must have attached the original contract, the chain of assignment, and an itemized statement to the complaint. If the documents are missing or incomplete, raise that immediately. California also offers a streamlined limited civil discovery process under Cal. Code Civ. Proc. §§ 94-95, allowing each party to use 35 interrogatories and other limited tools. Even at this stage, an Answer that raises statute of limitations, Rosenthal Act violations, FDBPA documentation deficiencies, and FDCPA validation failures often pressures the debt buyer to dismiss or settle. Most California consumer debt cases that go beyond the initial filing collapse on documentary deficiencies.