Sued by Synchrony Bank in South Carolina? 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 South Carolina, the statute of limitations for credit card debt is 3 years. If your last payment was more than 3 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.

South Carolina Consumer Protection Code

In addition to the federal FDCPA, South Carolina's South Carolina Consumer Protection Code may provide additional protections and remedies against Synchrony Bank's collection practices.

South Carolina Court System

Magistrate court handles cases up to $7,500. Circuit court for larger amounts. Filing fees in South Carolina typically range $40-$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 South Carolina?

30 days from service.

What is the SOL in South Carolina?

3 years for all contract types — one of the shortest in the country.

Can they garnish my wages in SC?

No. South Carolina prohibits wage garnishment for consumer debts.

What makes SC favorable for debt defense?

The combination of a 3-year SOL and no wage garnishment makes South Carolina one of the most consumer-friendly states.

Can a credit card company garnish my wages in South Carolina?

Generally no. South Carolina is one of a small number of states where wage garnishment for ordinary consumer debts is not available to private creditors. Under S.C. Code Ann. § 15-39-410 and related provisions, private creditors like credit card companies, medical providers, and debt buyers cannot garnish your paycheck in South Carolina to satisfy a judgment, even after they have sued and won. The exceptions are narrow: child support, alimony, federal and state taxes, federal student loans, and a few other government-related debts can still result in wage garnishment. If a private debt collector threatens to garnish your wages over a credit card or medical debt in South Carolina, that threat itself may violate the federal FDCPA and the South Carolina Consumer Protection Code because they cannot lawfully follow through. A judgment can still result in bank account levies, real property liens, and execution on non-exempt personal property, so a judgment is still serious.

What is the South Carolina Consumer Protection Code and how does it apply to debt collectors?

The South Carolina Consumer Protection Code at S.C. Code Ann. § 37-1-101 et seq. is a comprehensive statute regulating consumer credit transactions in the state. Article 5, S.C. Code Ann. § 37-5-101 et seq., governs creditor remedies and collection conduct. Section 37-5-108 prohibits unconscionable conduct in collecting debts, including a list of practices similar to but broader than the federal FDCPA. The Code is administered by the South Carolina Department of Consumer Affairs, which licenses many credit-related businesses and accepts complaints. Violations can trigger administrative action and a private right of action for actual damages and attorney fees. Because the Code applies to both creditors and collectors, it can reach conduct by the original bank or medical provider that the federal FDCPA cannot reach. Combining a Code claim with a federal FDCPA claim in a counterclaim against a debt buyer often produces faster and better settlements.

I was sued in South Carolina magistrate court. How does that work?

South Carolina magistrate courts have civil jurisdiction up to $7,500 under S.C. Code Ann. § 22-3-10. They are designed for relatively informal proceedings with simplified rules. When served, you will get a complaint and a notice telling you to file a written answer within 30 days, although the exact timing depends on how you were served. Do not skip the answer. If you fail to respond, the debt buyer will move for default judgment and the court will likely enter one without examining whether the buyer can actually prove the debt. Your answer can be short, denying the substantive allegations and listing defenses such as lack of standing, statute of limitations, and failure to attach the contract. Once your answer is on file, you can use limited discovery and prepare for trial. Many magistrates are sympathetic to self-represented defendants and will insist that a debt buyer produce real documentary proof. If you lose at the magistrate level, you have a right to appeal to Circuit Court for a do-over.

What is the statute of limitations on debt in South Carolina?

South Carolina applies a three-year statute of limitations to most contract and account actions under S.C. Code Ann. § 15-3-530. That is shorter than most states and a significant consumer protection. The clock generally starts on the date of the first missed payment that was never cured. Once three years have passed without a payment or written acknowledgment, the debt is generally time-barred. Making a partial payment or written acknowledgment of an old debt can restart the clock, so do not pay anything on an old debt without legal advice. For installment loans, courts sometimes apply the limitations period to each missed payment, although acceleration by the lender starts the full balance running. If you are sued in South Carolina on a debt that is more than three years past the last payment, raise the statute of limitations as an affirmative defense in your answer. South Carolina courts routinely dismiss time-barred debt buyer suits when the defense is properly raised.

How do I file a complaint against a debt collector with South Carolina Consumer Affairs?

The South Carolina Department of Consumer Affairs accepts written complaints against debt collectors at consumer.sc.gov or by phone at 800-922-1594. SCDCA licenses collection agencies and has authority under the Consumer Protection Code to investigate complaints, impose administrative penalties, and revoke licenses. To file an effective complaint, gather copies of any letters from the collector, recordings of phone calls if you have them, a log of dates and times of calls, and any documents showing the alleged debt. Submit the complaint online and follow up if you do not receive an acknowledgment within a few weeks. A regulatory complaint does not directly recover money for you, but a documented complaint history is valuable in private litigation and can prompt the collector to settle individual matters more reasonably. If the conduct rises to the level of an FDCPA or SCCPC violation, you can also pursue a private action for damages and attorney fees in addition to the regulatory complaint.