Sued by Synchrony Bank in Massachusetts? 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 Massachusetts, 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.

Massachusetts Wage Garnishment Exemptions

Only 15% of gross wages or amount exceeding 50x minimum wage. Massachusetts is very protective.

Massachusetts Consumer Protection Act (Chapter 93A)

In addition to the federal FDCPA, Massachusetts's Massachusetts Consumer Protection Act (Chapter 93A) may provide additional protections and remedies against Synchrony Bank's collection practices.

Massachusetts Court System

Small claims limit $7,000. District and superior courts for larger cases. Filing fees in Massachusetts typically range $40-$300.

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 to respond in Massachusetts?

20 days from service.

What is the SOL?

6 years for all contract types.

How much can they garnish?

Only 15% of gross wages — Massachusetts is one of the most protective states for wage garnishment.

What is Chapter 93A?

Massachusetts Chapter 93A is a powerful consumer protection law that allows treble (triple) damages for unfair and deceptive practices.

Massachusetts only allows 2 calls per week?

Essentially yes, when calling a residential phone. Under the AG's debt-collection regulations at 940 CMR 7.04(1)(f), a creditor cannot initiate more than two telephone communications in any consecutive 7-day period to a consumer's residence. For mobile phones, the limit is two per 7-day period and four per 30-day period. These limits are far stricter than federal FDCPA (which leaves call frequency more ambiguous) and stricter than CFPB Regulation F's 7-calls-in-7-days rule. Violations are unfair/deceptive practices under M.G.L. c. 93A, which means treble damages and mandatory attorney's fees on top of any actual damages. The rules apply to both third-party collectors and original creditors. To enforce: keep a log of every call (date, time, number, recording if legal in your state), then send a 93A demand letter explaining the violations and demanding relief. If the collector does not make a reasonable offer within 30 days, you can sue under M.G.L. c. 93A § 9 for damages plus attorney's fees.

What is a Chapter 93A demand letter and why do I need one?

Chapter 93A is Massachusetts' main consumer-protection statute. Under M.G.L. c. 93A § 9, before suing a collector or creditor for unfair or deceptive practices, you must first send a written demand letter at least 30 days before filing suit. The letter must (1) identify the claimant, (2) reasonably describe the unfair or deceptive act, and (3) state the injury suffered. The collector then has 30 days to make a reasonable written offer of settlement. If they do, your recovery in any later lawsuit is capped at that offer. If they refuse or lowball, you can sue for actual damages or $25, whichever is greater, plus mandatory attorney's fees - and the court can award up to treble damages if the violation was willful or knowing. The demand letter is more than a formality; it is a strategic tool. Drafting it correctly is important, and most Massachusetts consumer attorneys will prepare one as part of taking your case. The 93A framework is one of the most consumer-friendly UDAP statutes in the country.

What is the statute of limitations on debt in Massachusetts?

Massachusetts has a 6-year statute of limitations on contract debt and open accounts under M.G.L. c. 260 § 2. That covers credit-card debt, store-card debt, personal loans, and most medical-bill suits. The clock runs from the date of breach, generally the date of last activity or last payment on the account. Massachusetts is one of the states where partial payment or written acknowledgment can restart the SOL clock under M.G.L. c. 260 § 13, so do not pay anything on an old account without first confirming the dates. Once 6 years have passed, the SOL is a complete defense if you raise it in your answer to a suit. Massachusetts also follows the rule that suing on a time-barred debt is an unfair or deceptive practice under Chapter 93A and the AG's 940 CMR 7.00 regulations, so a collector who files a stale suit may face both dismissal and a counterclaim for treble damages and attorney's fees. Always check the SOL before responding to a collection notice.

Can a collector garnish my wages in Massachusetts?

Yes, but Massachusetts gives consumers more wage protection than federal law. Under M.G.L. c. 246 § 28, a collector can garnish only up to 15% of your disposable earnings (after taxes and required withholdings), or the amount exceeding 50 times the state minimum wage per week - whichever is less. Federal law allows up to 25%, so Massachusetts cuts that nearly in half. Certain income is fully exempt from garnishment: Social Security, SSI, VA benefits, unemployment, workers' compensation, and most public-benefit payments. Garnishment requires a court judgment first, so it should not be a surprise - you will have been sued and either lost or defaulted. If you are facing garnishment, file a Claim of Exemption with the court that issued the order. You may also be able to vacate the underlying judgment if you were never properly served, if the collector lacked standing or was unlicensed, or if the SOL had expired. Massachusetts attorneys often handle these defenses on a 93A fee-shifting basis.

Do I have to pay an old debt that shows up on my credit report?

Not just because it appears there. Whether you owe a debt is a separate question from whether it is on your credit report. Under federal law (Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq.), most negative information must come off your credit report after 7 years. But the debt itself can survive longer or shorter depending on the state SOL - in Massachusetts, that is 6 years for most contract debt. So three scenarios are possible: (1) debt is on your report and still within SOL - the collector can sue, (2) debt is on your report but past SOL - they may not sue, but it still affects credit, (3) debt is off your report but within SOL - they can still sue, just no credit-report effect. Before paying anything on old Massachusetts debt, confirm the SOL date, dispute the report under FCRA if anything is wrong, and consider whether a 93A demand letter is warranted. Settling a time-barred debt or making a partial payment can restart the SOL under M.G.L. c. 260 § 13.