Sued by Synchrony Bank in North Dakota? 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 North Dakota, 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.

North Dakota Wage Garnishment Exemptions

Greater of 75% of disposable earnings or 40x minimum wage exempt.

North Dakota Consumer Fraud Act

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

North Dakota Court System

Small claims limit $15,000. District court handles larger civil cases. Filing fees in North Dakota typically range $50-$200.

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 North Dakota?

21 days from service.

What is the SOL?

6 years for all contract types.

Can wages be garnished?

Yes. Greater of 75% of disposable earnings or 40x minimum wage is exempt.

Where are cases filed?

Small claims up to $15,000. District court for larger amounts.

Is the collection agency suing me licensed under NDCC Chapter 13-05?

Yes, third-party collection agencies and most debt buyers operating in North Dakota are required to be licensed under NDCC Chapter 13-05 by the North Dakota Department of Financial Institutions. Licensees must post a bond, which provides a potential additional source of recovery for consumers who obtain a judgment against the collector. You can verify a license by searching the DFI's online licensee lookup or by contacting the department directly. If the entity that sent you collection letters or filed suit was not licensed at the relevant time, that is a defense to the action and may support a counterclaim under NDCC 51-15. Even where a collector is currently licensed, look at the entire chain of title in a debt-buyer case: the original creditor's assignee, intermediate debt buyers, and the current plaintiff must all comply with licensing requirements when applicable. Always check licensure first; it is one of the fastest ways to find leverage in a North Dakota collection case.

How long does a creditor have to sue me on a debt in North Dakota?

North Dakota's statute of limitations is six years on most written contracts and open accounts under NDCC 28-01-16, which includes most credit-card and consumer-debt claims. Some specific causes of action have different limitation periods. The clock generally begins running from the date of last payment or default. Once the six-year period has expired, the debt is time-barred and you have a complete defense to a lawsuit, but you must affirmatively raise the defense in your answer. A time-barred debt remains payable voluntarily, but suing or threatening suit on a time-barred debt violates the FDCPA, 15 U.S.C. § 1692e, and may also violate NDCC 51-15. Partial payments and written acknowledgments can restart the clock under certain circumstances, so be careful with old debts. If unsure of the date of last payment, send a written validation request under FDCPA 15 U.S.C. § 1692g and pull your credit reports to find the original charge-off date as a reference point.

What does NDCC Chapter 51-15 add to my federal FDCPA rights?

The federal FDCPA applies only to third-party collectors and debt buyers, but North Dakota's UDAP statute, NDCC Chapter 51-15, reaches a broader range of conduct by any business engaged in trade or commerce, including original creditors. It prohibits any unfair, deceptive, fraudulent, or unconscionable practice and provides for actual damages, attorney fees, costs, and civil penalties up to $5,000 per violation. The Consumer Protection Division of the North Dakota Office of Attorney General enforces NDCC 51-15 and accepts complaints. In practice, this means if a national bank, a hospital billing department, or another original creditor engages in misleading collection conduct that falls outside the FDCPA, you may still have a strong state-law claim. Combining FDCPA against the third-party collector with NDCC 51-15 against the original creditor or debt buyer can substantially increase the settlement value of a North Dakota collection case.

Can a North Dakota collector garnish my Social Security or other federal benefits?

No. Social Security, SSI, VA benefits, federal pensions, and most other federal benefits are exempt from garnishment by private creditors under 42 U.S.C. § 407 and 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 that violates the FDCPA, 15 U.S.C. § 1692e. When federal benefits are deposited into your bank account by direct deposit, the bank is required to automatically protect up to two months of those deposits when a garnishment order is received, without you having to file anything. To preserve that automatic protection, avoid commingling federal benefits with significant amounts of other money in the same account. If your bank account is frozen, file an exemption claim with the court promptly and provide proof of the benefit source. Document any threats to take exempt funds; that conduct typically supports an FDCPA counterclaim with statutory damages up to $1,000 plus attorney fees, and may also support an NDCC 51-15 claim.

I was sued in North Dakota. What is the deadline to respond and what should I do?

If you have been served with a summons and complaint in a North Dakota collection case, you generally have 21 days to file a written answer (Rule 12, North Dakota Rules of Civil Procedure). If you do not respond, the plaintiff can move for default and the court can enter a default judgment for the full amount claimed plus interest and costs. Once a judgment is entered, the collector can pursue wage garnishment up to the federal cap, bank levy, and property liens. First, verify proper service. Second, check the date of default against the six-year statute of limitations under NDCC 28-01-16. Third, demand the original signed agreement, the full chain of assignments if a debt buyer is suing, and itemized statements showing how the balance was calculated. Fourth, raise FDCPA and NDCC 51-15 counterclaims if the collector engaged in misleading conduct. Fifth, check licensure under NDCC 13-05. Always file your answer on time; default judgments can be vacated under Rule 60 but it is harder than defending on the merits.