With no state fair debt law, consumers in South Dakota should refer to the federal Fair Debt Collection Practices Act (FDCP) if they have been a victim of predatory or illegal debt collection practices. Some rules include:
- Debt collectors cannot threaten you with violence or use abusive or foul language
- Collectors cannot reveal your debt to anyone except you and your attorney
- If you retain an attorney, collectors must contact you through your lawyer
- Collectors cannot misrepresent themselves as being something other than a collector/creditor
- Collectors cannot publish or post your name
- Any correspondence must be in an envelope that only has the creditor’s name and address--no postcard correspondence can be used
- You can only be contacted by a collector between 8am and 9pm (unless you’ve agreed to another time)
- You have up to 30 days to dispute a debt--once the written dispute is set in motion the collector cannot contact you until it provides you with documentation
Consumers in South Dakota who have been wronged by a debt collector should file an official complaint with the South Dakota Attorney General. Additionally, consumers can also pursue illegal debt collection actions through the Fair Debt Collection Practices Act (FDCPA).
South Dakota Statue of Limitations (SOL)
South Dakota has a six-year statue of limitation (SOL) on open accounts such as credit cards, meaning that the creditor can contact you for up to six years. For written contracts creditors can also pursue you for up to six years. Consumers can consider South Dakota debt settlement during the time the account remains open.
Although Social Security is protected, South Dakota provides less protection for non-income wage garnishment than other states. The few areas that are protected include:
- Pensions: only state and municipal employee pensions are protected in South Dakota
- Public benefits/assistance-- the few areas protected in South Dakota include workers’ compensation, unemployment and aid to families with dependent children
- Insurance and annuity protection--although other areas may have limited protection, South Dakota extends more protection in the insurance annuity area. Examples include annuity benefits, health and life insurance
South Dakota Credit Card Debt Relief Act of 2010
The Credit Card Debt Relief Act of 2010 has streamlined the methods for repaying debt and regulated how collectors work with debtors. The Act has impacted debt relief collections several ways:
- The number of fraudulent or weak performing credit card companies are gone
- Reduces the chances of falling victim to fraudulent debt settlement companies due to new Federal Trade Commission (FTC) reforms
- Increased, open communication from creditors--more information is provided to help you eliminate your loans
- Debt settlement companies cannot request upfront fees from clients