Statute of limitations on debt in South Dakota
6 years to sue on a written contract or an open account (SDCL 15-2-13(1) (6 years for an action on a contract, obligation or liability, express or implied)).
Short answer
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.
- Written contracts
- 6 years
- Open accounts and unwritten agreements
- 6 years
How long collectors have to sue in South Dakota
- 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
With 6 years, South Dakota shares the most common limit in our 48 state guides (22 states). Nearby, the written-contract limit is 6 years in North Dakota, 6 years in Minnesota, 10 years in Iowa and 5 years in Nebraska.
If a collector breaks the law in South Dakota
Your right to sue a collector: 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).
Can a payment restart the clock in South Dakota?
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)
Is my debt too old? Check South Dakota's time limit
An old debt in a South Dakota court
Raise the time limit in your answer. Time to answer in South Dakota: 30 days after the complaint is served on you (circuit court)
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.
Steps for an old debt in South Dakota
Think before you pay or sign
In South Dakota: 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.
Dispute the debt in writing
A dispute letter sent within 30 days of the validation notice makes the collector verify the debt.
Complain about a suit on a time-barred debt
Complain to South Dakota Attorney General, Division of Consumer Protection and to the CFPB at consumerfinance.gov/complaint. Phone: 1-800-300-1986 (in South Dakota); 605-773-6585 for the hearing impaired.
Old debts and your credit report
A collector may not sue or threaten to sue on a time-barred debt (12 CFR 1006.26(b)). A collection can stay on your credit report up to 7 years, counted from 180 days after the first missed payment (15 U.S.C. 1681c). Read the time-barred debt guide.
Free help in South Dakota
Questions about old debts in South Dakota
What is the statute of limitations on debt in South Dakota?
6 years for written contracts and 6 years for open accounts and unwritten agreements (SDCL 15-2-13(1) (6 years for an action on a contract, obligation or liability, express or implied)).
If I pay part of an old debt in South Dakota, does the time limit start over?
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)