Sued by Synchrony Bank in New Jersey? 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 New Jersey, 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.

New Jersey Wage Garnishment Exemptions

Only 10% of gross income for most debtors. If income is less than 250% of poverty level, wages are completely exempt. Very protective.

New Jersey Consumer Fraud Act

In addition to the federal FDCPA, New Jersey's New Jersey Consumer Fraud Act may provide additional protections and remedies against Synchrony Bank's collection practices.

New Jersey Court System

Small claims limit $5,000. Special civil part handles cases up to $20,000. Law division for larger amounts. Filing fees in New Jersey typically range $35-$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 New Jersey?

35 days from service — one of the longer deadlines, but do not wait until the last day.

What is the SOL in New Jersey?

6 years for all contract types.

How protective is NJ on wage garnishment?

Very protective. Only 10% of gross income can be garnished. If your income is below 250% of the federal poverty level, your wages are completely exempt.

What is the special civil part?

New Jersey's court for civil cases up to $20,000. Most consumer debt lawsuits are filed here.

Is Pressler Feltner active in NJ?

Yes. Pressler Feltner is one of the highest-volume debt collection filers in New Jersey.

How long does a creditor have to sue me on a debt in New Jersey?

New Jersey's statute of limitations on most consumer debts is six years (N.J.S.A. 2A:14-1), which includes credit-card debts and open-account claims. Sales of goods under the Uniform Commercial Code follow a four-year limit (N.J.S.A. 12A:2-725), which can apply to certain store-card and revolving accounts depending on how the case is framed. The clock generally begins running from the date of last payment or default. Once the limit has expired, the debt is time-barred and you have a complete defense, but you must affirmatively plead the defense in your answer. Time-barred debts can still be requested for voluntary payment, but suing or threatening suit on a time-barred debt violates the FDCPA. Watch out for partial payments and written acknowledgments, which can restart the clock under certain circumstances. If unsure of dates, send a written validation request under 15 U.S.C. § 1692g and check your credit reports for the original charge-off date.

What is the NJ Consumer Fraud Act and why is it so powerful in collection cases?

The New Jersey Consumer Fraud Act, N.J.S.A. 56:8-1 et seq., is one of the most consumer-friendly statutes in the country. It prohibits any unconscionable commercial practice, deception, fraud, false pretense, false promise, or misrepresentation in connection with the sale of merchandise or services. The remedy structure is what makes it powerful: automatic treble damages on any ascertainable loss, plus mandatory attorney fees and costs to any prevailing consumer. The minimum award framework, the broad definition of unconscionable conduct, and the mandatory fee shifting combine to make the CFA a serious tool in collection counterclaims. New Jersey courts have applied the CFA to misrepresented balances, misleading collection letters, deceptive debt-validation responses, and a wide range of related conduct. Combining a CFA counterclaim with a federal FDCPA claim in the same answer can substantially shift the economics of a consumer-debt case and often opens the door to a favorable settlement.

I was sued in NJ Special Civil Part. What is my deadline to respond?

If you have been sued in the Special Civil Part of the Superior Court Law Division in New Jersey, you must file a written answer within 35 days of the date the summons and complaint were served on you. If you do not respond, the plaintiff can request a default judgment for the full amount claimed plus interest and costs, and once a judgment is entered the collector can pursue wage garnishment, bank levy, and property liens. The answer fee is modest and you can file pro se. Your answer should deny the debt, demand strict proof, and raise common defenses such as statute of limitations, lack of standing, lack of admissible business records, unconscionable commercial practice under the NJ Consumer Fraud Act, and FDCPA violations as appropriate. Default judgments in Special Civil Part can be vacated under R. 4:50-1 if you act quickly, particularly within months of entry, and can show excusable neglect or a meritorious defense.

How much of my paycheck can a New Jersey collector take?

New Jersey wage garnishment is more protective than the federal floor for lower-income workers. Under N.J.S.A. 2A:17-50, the garnishment cap is 10 percent of gross income for debtors with earnings under 250 percent of the federal poverty level, and up to 25 percent for higher earners, subject to the federal CCPA limits. Disposable earnings means earnings after legally required deductions. Federal benefits including Social Security, SSI, VA, and most federal pensions are fully exempt from garnishment by private creditors. To enforce a wage garnishment, a collector must first obtain a judgment, then apply to the court for a wage execution; you receive notice and have the opportunity to challenge the execution and claim exemptions. If a collector threatens immediate wage garnishment before judgment is entered, that is a misleading statement and may violate the FDCPA. Always demand to see the judgment and wage execution paperwork before treating any garnishment threat as legitimate.

Can a collector keep calling me after I tell them in writing to stop in New Jersey?

No. Under the federal Fair Debt Collection Practices Act, 15 U.S.C. § 1692c(c), once you send a written cease-and-desist letter to a third-party debt collector, the collector is limited to a single additional contact to confirm receipt or to advise you of a specific action they intend to take. Continued collection calls after a written cease request are a per-se FDCPA violation, with statutory damages up to $1,000 per consumer plus actual damages and attorney fees. New Jersey collection regulations and the NJ Consumer Fraud Act may also reach this conduct, particularly where the calls are abusive or include misrepresentations. Always send cease-and-desist letters in writing, keep a copy, and send by a trackable method such as certified mail or USPS Priority with tracking. Save voicemails, screenshot call logs, and keep a contemporaneous log of every contact. That documentation is the foundation of a strong FDCPA counterclaim if collection continues.