Debt Collection Laws in South Dakota

Dena Standley | September 22, 2023

Edited by Hannah Locklear

South Dakota's Fair Debt Collection Practices Act and other consumer protection laws allow you to stop debt collector harassment. These laws also prevent creditors and debt collectors from contacting your employer, neighbors, and family. Moreover, you may impose monetary damages on debt collectors if harmed by unfair debt collection procedures in South Dakota.

For an average consumer paying high expenses, it makes sense that you want to avoid debt collectors. But here is a comprehensive overview of South Dakota's debt collection laws, from collection practices to statute of limitations, debt settlements, and wage garnishments. Let's explore.

Sue for debt? Resolve it through debt settlement.

South Dakota collection laws can protect you

As part of the Fair Debt Collection Practices Act (FDCPA) and the Fair Credit Reporting Act, debt harassment is governed by federal guidelines. Violations of harassment are subject to a penalty of $1,000 per violation and additional legal charges. As such, when collectors in South Dakota use continuous and multiple improper practices, debt harassment can be costly for them.

As for state laws, S.D. Codified Laws § 54-4-77 prohibits unfair debt collection practice and specifically declares that South Dakota debt collectors cannot:

• Harass, oppress, or abuse you or anyone they contact
• Threaten with violence or harm
• Publicize consumers who haven't paid their debts, but they can share the information with other credit reporting agencies
• Use vulgar or obscene language
• Call repeatedly before 8:00 a.m. and after 9:00 p.m.
• Present themselves as attorneys or government officials
• Make a false accusation of a crime
• Lie about their affiliation with a credit reporting agency or misrepresent your debt
• Present papers as legal forms if they aren't
• Threaten to arrest for failure to pay debt
• Threaten to seize, garnish, attach, or sell your property or wages (unless allowed by the law) if you fail to pay
• Threaten to take legal action against you if they can't or don't intend to take action against you
• Threaten to collect interest, fees, or other charges if the contract that created your debt doesn’t allow it

In addition to this debt collection law, South Dakota's Attorney General's Office provides a Consumer Protection Division handbook that outlines and clarifies federal requirements.

South Dakota debt collectors must validate your debt

Within five (5) days of contacting you, a collector must send you a written validation notice of your debt and its details. If you dispute any of the information on this notice, you can send a Debt Validation Letter to formally request debt verification from the collector.

Under the FDCPA, a collection agency must cease all communication efforts once it receives a Debt Validation Letter from you — until it can provide the requested information. You can use the letter as a tool to stop debt collection phone calls and letters, at least until the debt is validated. You can also include a statement asking the agency not to contact you unless it intends to sue you.

To get the most out of your Debt Validation Letter, ask for the following information:

• The name of the original creditor and the amount you owe.
• A copy of the contract you had with the initial creditor.
• The age of the debt compared to your state’s statute of limitations.
• The last transaction made on your account.
• Proof that Rash Curtis and Associates has the right to collect money from you.
• A valid debt collection license number for your state.

Once the debt collection agency’s staff receives your Debt Validation Letter, they’ll review your account to see if they have all the information you requested. If they don’t, you shouldn’t hear from them again. However, you’ll want to monitor your credit report and dispute any related items. They should remove the adverse reports since they didn’t validate your debt.

Watch the following video to learn how to write a Debt Validation Letter to a collection agency in two steps.

The statute of limitations in South Dakota prevents old debt lawsuits

In South Dakota, the statute of limitations determines how long a creditor has to sue you for unpaid debt and specifies how long collection agencies can pursue debts. It is helpful to know the statute of limitations so you can determine whether the debt is too old for legal action.

If it’s a time-barred loan and a debt collector sends you a Summons and Complaint, you can include this information as part of your affirmative defense in your Answer to the court. The court will dismiss any lawsuit they file after the statute of limitations.

The following table highlights South Dakota's debt statute of limitations:

Statute of Limitations on Debt in South Dakota

Debt Type	Deadline
Credit card	6 years
Medical	6 years
Student loan	6 years
Auto loan	6 years
Personal loan	6 years
Mortgage	15 years
Judgment	20 years
Source: S.D. Codified Laws § 15-2-6, § 15-2-7, and §15-2-13

Wage garnishment laws in South Dakota

The Consumer Credit Protection Act (CCPA) governs wage garnishment. The state's wage garnishment laws are outlined in Chapter 21 of the South Dakota Codified Laws and the South Dakota Rules of Civil Procedure.

If a debt has been reduced to a final judgment, garnishment procedures can be used to enforce it. Garnishment allows a creditor to obtain payment by taking property, usually wages or bank account balances, to satisfy a judgment.

Additionally, post-judgment garnishment (a writ of attachment) is allowed in cases where the debtor is likely to conceal or remove assets from the jurisdiction (SDCL Ch. 21-17A).

South Dakota Garnishment laws are generally more restrictive than those in the federal government. According to SD law, a debtor may garnish up to 20 % of their disposable income, while federal law allows up to 25%of their non-exempt wages to be garnished.

South Dakota’s wage garnishment laws and process

• The creditor wins the debt collection lawsuit.
• The creditor serves you and the employer a garnishee summons and affidavit.
• Your employer sends the creditor an exemption request and a garnishment disclosure form (answer).
• Either party may object.
• In case you object, there is a trial.
• Garnishment commences unless your wages are exempt.

The South Dakota standard exemption is also higher than the Federal standard exemption. Unlike Federal law, South Dakota's basic weekly earnings exemption is 40 times greater than the Federal Minimum Wage for one week (SDCL §21-18-51).

Typically, garnishment summons, affidavits, and disclosures are served on garnishees by certified mail or in the same way as summonses and complaints (SDCL 21-18-7). Judgment debtors must pay a continuing lien on their wages for 120 days (SDCL 21-18-14.1).

Judgment debtors have five days after service, or eight days if served by certified mail, to claim exemptions allowed by law in addition to their absolute exemptions, and if they fail to do so, those exemptions are waived (SDCL §21-19-3).

A supplemental judgment against the garnishee may be obtained if the garnishee fails to respond within 30 days (SDCL §21-18-39).

Settle your debt in South Dakota

In South Dakota, a settlement negotiation depends on the individual parties. Generally, a lump sum payment is typically included in these agreements to reduce or completely eliminate further payments.

But because of fraudulent debt settlement companies, this enticing option may be dangerous. Play safe and have direct negotiations with your creditor by using SoloSettle.

SoloSettle, powered by SoloSuit, is a tech-based approach to debt settlement. Our software helps you send and receive settlement offers until you reach an agreement with the collector. Once an agreement is reached, we’ll help you manage the settlement documentation and transfer your payment to the creditor or debt collector, helping you keep your financial information private and secure.

Check out this video to learn how SoloSettle can help you avoid wage garnishment and settle your debt.

What is SoloSuit?

SoloSuit makes it easy to fight debt collectors.

You can use SoloSuit to respond to a debt lawsuit, to send letters to collectors, and even to settle a debt.

SoloSuit's Answer service is a step-by-step web-app that asks you all the necessary questions to complete your Answer. Upon completion, we'll have an attorney review your document and we'll file it for you.

>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

>>Read the NPR story on SoloSuit. (We can help you in all 50 states.)

How to answer a summons for debt collection in your state

Here's a list of guides for other states.

All 50 states.

• Alabama
• Alaska
• Arizona
• Arkansas
• California
• Colorado
• Connecticut
• Delaware
• Florida
• Georgia
• Hawaii
• Idaho
• Illinois
• Indiana
• Iowa
• Kansas
• Kentucky
• Louisiana
• Maine
• Maryland
• Massachusetts
• Michigan
• Minnesota
• Mississippi
• Missouri
• Montana
• Nebraska
• Nevada
• New Hampshire
• New Jersey
• New Mexico
• New York
• North Carolina
• North Dakota
• Ohio
• Oklahoma
• Oregon
• Pennsylvania
• Rhode Island
• South Carolina
• South Dakota
• Tennessee
• Texas
• Utah
• Vermont
• Virginia
• Washington
• West Virginia
• Wisconsin
• Wyoming

Guides on how to beat every debt collector

Being sued by a different debt collector? Were making guides on how to beat each one.

• Absolute Resolutions Investments LLC
• Accredited Collection Services
• Alliance One
• Amcol Clmbia
• American Recovery Service
• Asset Acceptance LLC
• Asset Recovery Solutions
• Associated Credit Services
• Autovest LLC
• Cach LLC
• Cavalry SPV I LLC
• Cerastes LLC
• Colinfobur
• Covington Credit
• Crown Asset Management
• CTC Debt Collector
• Cypress Financial Recoveries
• Delanor Kemper & Associates
• Eagle Loan of Ohio
• Educap
• Estate Information Services
• FIA Card Services
• Forster & Garbus
• Freshview Solutions
• Fulton Friedman & Gullace LLP
• Harvest Credit Management
• Howard Lee Schiff
• Hudson & Keyse LLC
• Integras Capital Recovery LLC
• Javitch Block
• Jefferson Capital Systems LLC
• LVNV Funding
• Mannbracken
• Mariner Finance
• Medicredit
• Michael J Adams PC
• Michael J Scott
• Midland Funding LLC
• Mullooly, Jeffrey, Rooney & Flynn
• Mountain Land Collections
• MRS Associates
• National Collegiate Trust
• Nationstar Foreclosure
• Northstar Capital Acquisition
• NCEP LLC
• NRC Collection Agency
• OneMain Financial
• Palisades Collection LLC
• Pallida LLC
• Paragon Revenue Group
• Pinnacle Collections Agency
• PMAB LLC
• Portfolio Recovery Associates
• Provest Law
• PYOD LLC
• Reunion Student Loan Finance Corporation
• Revenue Group
• Regents and Associates
• RSIEH
• Salander Enterprises LLC
• Second Round Sub LLC
• Security Credit Services
• Sherman Financial Group
• Suttell and Hammer
• T-Mobile
• Transworld Systems
• Tulsa Teachers Credit Union
• UCB Collection
• Velo Law Office
• Velocity Investments
• Waypoint Resource Group
• Weinberg and Associates
• Wolpoff & Abramson

Win against credit card companies

Is your credit card company suing you? Learn how you can beat each one.

• Bank of America
• Capital One
• Chase
• Credit One Bank
• PayPal Synchrony Card
• SYNCB/PPEXTR
• Synchrony Bank
• Target National Bank
• Wells Fargo

Going to Court for Credit Card Debt — Key Tips

How to Negotiate Credit Card Debts

How to Settle a Credit Card Debt Lawsuit — Ultimate Guide

Get answers to these FAQs

Need more info on statutes of limitations? Read our 50-state guide.

Why do debt collectors block their phone numbers?

How long do debt collectors take to respond to debt validation letters?

What are the biggest debt collector companies in the US?

Is Zombie Debt Still a Problem in 2019?

SoloSuit FAQ

If a car is repossessed, do I still owe the debt?

Is Portfolio Recovery Associates Legit?

Is There a Judgment Against Me Without my Knowledge?

Should I File Bankruptcy Before or After a Judgment?

What is a default judgment?— What do I do?

Summoned to Court for Medical Bills — What Do I Do?

What Happens If Someone Sues You and You Have No Money?

What Happens If You Never Answer Debt Collectors?

What Happens When a Debt Is Sold to a Collection Agency

What is a Stipulated Judgment?

What is the Deadline for a Defendants Answer to Avoid a Default Judgment?

Can a Judgement Creditor Take my Car?

Can I Settle a Debt After Being Served?

Can I Stop Wage Garnishment?

Can You Appeal a Default Judgement?

Do I Need a Debt Collection Defense Attorney?

Do I Need a Payday Loans Lawyer?

Do student loans go away after 7 years? — Student Loan Debt Guide

Am I Responsible for My Spouses Medical Debt?

Should I Marry Someone With Debt?

Can a Debt Collector Leave a Voicemail?

How Does Debt Assignment Work?

What Happens If a Defendant Does Not Pay a Judgment?

How Does Debt Assignment Work?

Can You Serve Someone with a Collections Lawsuit at Their Work?

What Is a Warrant in Debt?

How Many Times Can a Judgment be Renewed in Oklahoma?

Can an Eviction Be Reversed?

Does Debt Consolidation Have Risks?

What Happens If You Avoid Getting Served Court Papers?

Does Student Debt Die With You?

Can Debt Collectors Call You at Work in Texas?

How Much Do You Have to Be in Debt to File for Chapter 7?

What Is the Statute of Limitations on Debt in Washington?

How Long Does a Judgment Last?

Can Private Disability Payments Be Garnished?

Can Debt Collectors Call From Local Numbers?

Does the Fair Credit Reporting Act Work in Florida?

The Truth: Should You Never Pay a Debt Collection Agency?

Should You Communicate with a Debt Collector in Writing or by Telephone?

Do I Need a Debt Negotiator?

What Happens After a Motion for Default Is Filed?

Can a Process Server Leave a Summons Taped to My Door?

Learn More With These Additional Resources:

Need help managing your finances? Check out these resources.

How to Make a Debt Validation Letter - The Ultimate Guide

How to Make a Motion to Compel Arbitration Without an Attorney

How to Stop Wage Garnishment — Everything You Need to Know

How to File an FDCPA Complaint Against Your Debt Collector (Ultimate Guide)

Defending Yourself in Court Against a Debt Collector

Tips on you can to file an FDCPA lawsuit against a debt collection agency

Advice on how to answer a summons for debt collection.

Effective strategies for how to get back on track after a debt lawsuit

New Hampshire Statute of Limitations on Debt

Sample Cease and Desist Letter Against Debt Collectors

The Ultimate Guide to Responding to a Debt Collection Lawsuit in Utah

West Virginia Statute of Limitations on Debt

What debt collectors cannot do — FDCPA explained

Defending Yourself in Court Against Debt Collector

How to Liquidate Debt

Arkansas Statute of Limitations on Debt

Youre Drowning in Debt — Heres How to Swim

Help! Im Being Sued by My Debt Collector

How to Make a Motion to Vacate Judgment

How to Answer Summons for Debt Collection in Vermont

North Dakota Statute of Limitations on Debt

ClearPoint Debt Management Review

Indiana Statute of Limitations on Debt

Oregon Eviction Laws - What They Say

CuraDebt Debt Settlement Review

How to Write a Re-Aging Debt Letter

How to Appear in Court by Phone

How to Use the Doctrine of Unclean Hands

Debt Consolidation in Eugene, Oregon

Summoned to Court for Medical Bills? What to Do Next

How to Make a Debt Settlement Agreement

Received a 3-Day Eviction Notice? Heres What to Do

How to Answer a Lawsuit for Debt Collection

Tips for Leaving the Country With Unpaid Credit Card Debt

Kansas Statute of Limitations on Debt Collection

How to File in Small Claims Court in Iowa

How to File a Civil Answer in Kings County Supreme Court

Roseland Associates Debt Consolidation Review

How to Stop a Garnishment

Debt Eraser Review

Do Debt Collectors Ever Give Up?

Can They Garnish Your Wages for Credit Card Debt?

How Often Do Credit Card Companies Sue for Non-Payment?

How Long Does a Judgement Last?

​​How Long Before a Creditor Can Garnish Wages?

How to Beat a Bill Collector in Court