Debt collectors in South Dakota: your rights

Your federal rights

These federal rules apply in South Dakota and every other state. South Dakota'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 Dakota law and extra protections

South Dakota has no general debt collection act; the federal rules above still apply.

Can you sue under it?

South Dakota has no separate state debt collection act. You can use your rights under the federal FDCPA, including suing a collector within one year of a violation (as the South Dakota Attorney General's debt collection guide explains).

Official text

Read the law

Old debts in South Dakota

Written contracts

6 years

Open accounts and unwritten agreements

6 years

Does a payment restart the clock?

A new acknowledgment or promise counts only if it is in writing and signed by you. The law says this does not change the effect of a payment of principal or interest, so a payment may restart the clock. (SDCL 15-2-29)

Law

SDCL 15-2-13(1) (6 years for an action on a contract, obligation or liability, express or implied)

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 Dakota'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 Dakota

Wage limit

Stricter than federal: no more than the lesser of 20% of disposable earnings, or the amount above 40 times the federal or South Dakota minimum wage (whichever is higher) per week. (SDCL 21-18-51)

Head of household

The amount that can be taken under the 40-times-minimum-wage test is cut by $25 a week for each dependent family member living with you. (SDCL 21-18-51(2))

Law

SDCL 21-18-51

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 Dakota

Your homestead is fully exempt, within area limits (1 acre in town, 160 acres outside); if it is sold, up to $100,000 of the proceeds is exempt for one year (SDCL 43-31-1, 43-31-4, 43-45-3). A head of family may also choose other personal property worth up to $7,000 to keep ($5,000 for others) (SDCL 43-45-4).

Collector licensing in South Dakota

License required

Not confirmed

If you are sued in South Dakota

Time to answer

30 days after the complaint is served on you (circuit court)

If you don't answer

If you do not serve an answer within 30 days, the collector can ask the court for a default judgment, which can lead to garnishment.

Court self-help

South Dakota court self-help (official)

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

Where to complain in South Dakota

• South Dakota: South Dakota Attorney General, Division of Consumer Protection · 1-800-300-1986 (in South Dakota); 605-773-6585 for the hearing impaired
• 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 Dakota

• South Dakota Attorney General, Consumer Protection · 1-800-300-1986 (in South Dakota)
• Consumer Financial Protection Bureau (CFPB) complaint portal

Good to know in South Dakota

• South Dakota gives you 30 days to answer a lawsuit, longer than many states. (SDCL 15-6-12(a))
• Garnishment is capped at 20% of disposable pay, with an extra $25 a week protected for each dependent living with you. (SDCL 21-18-51)

Changes in 2024–2026

SDCL 43-45-3 (homestead exemption, including the exempt proceeds of a sale) was amended in 2025 (SL 2025, ch 185, § 1); current text protects up to $100,000 of sale proceeds for one year.

Free letters to send a collector

Questions about debt collection in South Dakota

Other states