South Carolina Debt Collection Laws

Your federal rights

These federal rules apply in South Carolina and every other state. South Carolina's own law, below, can add more.

Who the federal law covers. The Fair Debt Collection Practices Act (FDCPA) covers debt collectors who collect for someone else and companies that buy debts, not usually the original creditor collecting its own debt (15 U.S.C. 1692a(6)). Some state laws also cover original creditors.
A validation notice. A collector must give you a validation notice, in its first message or within 5 days after it, with the amount, the creditor and how to dispute (15 U.S.C. 1692g(a); 12 CFR 1006.34).
Your right to dispute. If you dispute the debt in writing within the validation period (30 days after you get the notice), the collector must stop collecting until it mails you verification (15 U.S.C. 1692g(b); 12 CFR 1006.38).
When collectors can contact you. No calls before 8 a.m. or after 9 p.m. your time, or at work if your employer doesn't allow it (15 U.S.C. 1692c(a)). More than 7 calls in 7 days about one debt is presumed to break the law (12 CFR 1006.14(b)(2)).
Telling a collector to stop. If you tell a collector in writing to stop contacting you, it must stop, except to tell you it is ending collection or will take a specific step such as a lawsuit (15 U.S.C. 1692c(c)).
What collectors can't do. No threats, obscene language, false statements (for example pretending to be a lawyer or the government, or threatening arrest) and no unfair practices such as collecting fees your contract doesn't allow (15 U.S.C. 1692d, 1692e, 1692f). A collector generally can't discuss your debt with your family, neighbors or employer (15 U.S.C. 1692c(b)).

Read how to dispute a debt or stop collector calls.

South Carolina law and extra protections

State law: South Carolina Consumer Protection Code: unconscionable debt collection (part of the Consumer Protection Code, Title 37)
Law: S.C. Code Ann. § 37-5-108
Covers original creditors: Yes
Extra protections: The rules apply to "a creditor or debt collector", so businesses collecting their own debts are covered too (S.C. Code Ann. § 37-5-108(5)(b)).
Collectors may not contact you at unusual or inconvenient times or places. Unless they know otherwise, the convenient hours are 8 a.m. to 9 p.m. (§ 37-5-108(5)(b)(i)).
If you or your employer asks in writing, collectors must stop contacting you at work, except to verify your job (§ 37-5-108(5)(b)(iii)).
Collectors may not discuss your debt with other people without your or a court's permission, and may not contact you by postcard (§ 37-5-108(5)(b)(iv), (ix)).
Your wages can't be garnished for a consumer credit sale, consumer loan, consumer lease or rent-to-own debt (§ 37-5-104).
Can you sue under it?: Yes. If a court finds unconscionable collection conduct, you can recover your actual damages plus a penalty of $100 to $1,000 (not in a class action). The court can also order the conduct to stop (S.C. Code Ann. § 37-5-108(2)).
Official text: Read the law

Old debts in South Carolina

Written contracts: 3 years
Open accounts and unwritten agreements: 3 years
Does a payment restart the clock?: Yes. Paying any part of the principal or interest counts as a written promise and can restart the time limit. Any other acknowledgment or promise counts only if it is in writing and signed by you (S.C. Code Ann. § 15-3-120).
Law: S.C. Code Ann. § 15-3-530(1); § 15-3-120
Official text: Read the law

The time limit is the statute of limitations. Once it runs out, the debt is “time-barred”: a collector must not sue or threaten to sue you, but the debt still exists. Read more about time-barred debt.

Is my debt too old? Check South Carolina's time limit

Every state limits how long a creditor or collector has to sue you over a debt. This is the statute of limitations. Choose your state, the type of debt and the date of your last payment to see the limit and an estimated end date. Nothing you type here is sent anywhere.

Wage garnishment and bank accounts in South Carolina

Wage limit: Stricter than federal: wages can't be garnished for a debt from a consumer credit sale, consumer lease, consumer loan or rent-to-own agreement (S.C. Code Ann. § 37-5-104). SCDCA says the exceptions are money owed to the government, child support, and a garnishment ordered in another state while you lived there. An employer may not fire you because a creditor tried to garnish your wages for such a debt (§ 37-5-106).
Bank account: If you don't claim a homestead exemption, you can protect cash and other liquid assets, including bank deposits, up to $7,600 (amount set on July 1, 2024; the law calls for a new inflation adjustment on July 1, 2026, which may change it) (S.C. Code Ann. § 15-41-30(A)(5), (B)). There is no automatic bank-account protection.
Law: S.C. Code Ann. §§ 37-5-104, 37-5-106, 15-41-30(A)(5)

Federal benefits such as Social Security, SSI and VA benefits that were directly deposited are protected in your bank account up to two months' worth (31 CFR 212.6). A creditor usually needs a court judgment before it can garnish your wages or bank account.

Property you can keep in South Carolina

Amounts in effect from July 1, 2024: homestead up to $76,125 per owner ($152,250 total per home); one motor vehicle up to $7,600; household goods up to $6,100 (S.C. Code Ann. § 15-41-30(A); U.S. Bankruptcy Court, D.S.C. notice). The law adjusts these every even-numbered year, so new amounts were due July 1, 2026 (§ 15-41-30(B)); check the current figures.

Collector licensing in South Carolina

License required: Not confirmed

If you are sued in South Carolina

Time to answer: 30 days after you receive the complaint. In Magistrates Court (claims of $7,500 or less, S.C. Code Ann. § 22-3-10) you can answer in writing or in person (Magistrates Rule 7(b)). Circuit Court also gives 30 days (SCRCP 12(a)).
If you don't answer: If you don't answer within 30 days, the court can enter a default judgment against you.
Court self-help: South Carolina court self-help (official)

Don't ignore court papers. Read what to do if a debt collector sues you.

Where to complain in South Carolina

South Carolina: South Carolina Department of Consumer Affairs (SCDCA) · 1-800-922-1594 (toll-free in SC) or 803-734-4200
Federal: the Consumer Financial Protection Bureau takes complaints about debt collectors at consumerfinance.gov/complaint · (855) 411-2372.
You can also report a collector to the Federal Trade Commission at ReportFraud.ftc.gov.

Free help in South Carolina

Good to know in South Carolina

South Carolina is one of the few states where consumer debts like credit cards can't be collected through wage garnishment (S.C. Code Ann. § 37-5-104; SCDCA guide).
South Carolina's time limit for suing on a contract debt is short: 3 years (S.C. Code Ann. § 15-3-530(1)).
Before demanding the full balance on many consumer credit debts, a creditor must first send a "right to cure" notice. You then have 20 days to catch up (SCDCA guide).

Changes in 2024–2026

The exemption dollar amounts in § 15-41-30 were adjusted for inflation on July 1, 2024. The law calls for the next adjustment on July 1, 2026 (S.C. Code Ann. § 15-41-30(B)).

Free letters to send a collector

Dispute a debt and ask for proof (validation letter)

Within 30 days of the collector's validation notice.

Tell a collector to stop or limit contact

Stop all contact, writing only, or no calls at work.

Questions about debt collection in South Carolina

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

3 years for written contracts and 3 years for open accounts and unwritten agreements (S.C. Code Ann. § 15-3-530(1); § 15-3-120).

Does paying on an old debt restart the clock in South Carolina?

Yes. Paying any part of the principal or interest counts as a written promise and can restart the time limit. Any other acknowledgment or promise counts only if it is in writing and signed by you (S.C. Code Ann. § 15-3-120).

How much of my paycheck can be garnished in South Carolina?

Stricter than federal: wages can't be garnished for a debt from a consumer credit sale, consumer lease, consumer loan or rent-to-own agreement (S.C. Code Ann. § 37-5-104). SCDCA says the exceptions are money owed to the government, child support, and a garnishment ordered in another state while you lived there. An employer may not fire you because a creditor tried to garnish your wages for such a debt (§ 37-5-106).

How much money in a bank account is protected in South Carolina?

If you don't claim a homestead exemption, you can protect cash and other liquid assets, including bank deposits, up to $7,600 (amount set on July 1, 2024; the law calls for a new inflation adjustment on July 1, 2026, which may change it) (S.C. Code Ann. § 15-41-30(A)(5), (B)). There is no automatic bank-account protection.

Does South Carolina have its own debt collection law?

Yes: the South Carolina Consumer Protection Code: unconscionable debt collection (part of the Consumer Protection Code, Title 37) (S.C. Code Ann. § 37-5-108). It also covers original creditors collecting their own debts.

How long do I have to answer a debt lawsuit in South Carolina?

30 days after you receive the complaint. In Magistrates Court (claims of $7,500 or less, S.C. Code Ann. § 22-3-10) you can answer in writing or in person (Magistrates Rule 7(b)). Circuit Court also gives 30 days (SCRCP 12(a)).

Where can I complain about a debt collector in South Carolina?

South Carolina Department of Consumer Affairs (SCDCA): https://consumer.sc.gov/consumer-resources/consumer-complaints · 1-800-922-1594 (toll-free in SC) or 803-734-4200

Sources

Last checked: Oct 24, 2026.

Federal sources

Debt collectors in South Carolina: your rights