Top-Rated Debt Collection Agency in South Dakota

Swift and Dependable Debt Collection in South Dakota - No Initial Charges, Pay Only When We Succeed. Request a FREE Consultation or Submit Your Claim Today.

Get free expert advice
Get free advice from the best debt collection specialists.
Portrait of Our Debt Collection Expert - Dan, who is available for free, personalized advice.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
4.97/5 Average rating from 600+ reviews

Why Debitura is Your Top Choice for Successful Debt Collection in South Dakota

Got unpaid invoices stacking up in South Dakota? Look no further than Debitura, your premier Debt Collection Agency South Dakota offers. We help businesses like yours get their hard-earned money back in an efficient and lawful manner. With our deep knowledge of local regulations, wide range of services, and dedicated team, we provide effective solutions for all your debt recovery needs. We keep it simple, professional, and most importantly, successful. Choose Debitura - because we deliver results, not just promises.

Achieving A-Z debt recovery for businesses in South Dakota.

Customized, data-driven debt recovery in South Dakota

Leveraging 500+ international debt collection professionals for optimal results.

South Dakota debt recovery rate excels at 87%.

The Ultimate Guide About Debt Collection In South Dakota

Navigating the intricacies of debt collection laws in South Dakota can be complex and challenging. For business professionals seeking to understand the nuances of pre-legal debt collection, this guide offers valuable insights and practical solutions.

From understanding the legalities of debt collection to effectively strategizing for debt recovery in South Dakota, our comprehensive guide aims to simplify the complex. We've broken down the critical aspects of debt enforcement into easily digestible sections, enabling you to apply this knowledge confidently and with authority.

This guide serves as an essential resource not only for professionals involved in the debt collection process but also for anyone seeking to understand South Dakota debt collection laws and processes better. Get ready to dive deep into the world of debt recovery in South Dakota.

Key facts

  • Debt Collection Laws: Debt collection in South Dakota is governed by both federal and state laws.
  • Statutes of Limitations: The limitation period for collection of open accounts or breach of contract is six years.
  • Interest Rates: Pre-judgment interest is awarded at the contract rate or the statutory rate, currently 10 percent per annum.
  • Late Payment Fees: In South Dakota, there is no maximum late fee for overdue invoices.
  • Wage Garnishment: South Dakota allows a maximum of 20 percent of the debtor's disposable income to be garnished.
  • Small Claims Limit: The small claims limit in South Dakota is $12,000.
  • Consumer Protection: South Dakota does not have a state consumer protection act or a fair debt collection act.
  • Bad Check Laws: If a person receives a dishonored check, they can bring an action under the state statute.
  • Repossession: South Dakota allows the expedited remedy of claim and delivery or self-help repossession.
  • Collection Costs: Post-judgment collection costs are taxable, including garnishment disclosure fees and debtor exam witness subpoena fees.

Introduction to Debt Collection In South Dakota

Debt collection is an important aspect of maintaining a healthy financial ecosystem. It refers to the procuring process of overdue payments on behalf of the original creditor. It is a critical function that helps businesses recover outstanding debts, and allows debtors to manage and settle their financial obligations in a legal and orderly manner.

In the world of debt collection, there are three pivotal entities: the debtor, the creditor, and the debt collection agency. Starting with the debtor, this is the individual or entity that owes the debt. The creditor, on the other hand, is the party to whom the debt is owed. The creditor may be a financial institution, service supplier, or an individual extending a loan. Finally, the debt collection agency acts as a middleman, commissioned by creditors to collect debts in exchange for a fee or percentage of the total amount owed.

When a debtor defaults on payments long enough for the debt to be classified as overdue, the creditor may pass the collection rights over to a collections agency. Some businesses have in-house collections departments, while others resort to third-party agencies, especially when pre-legal collection efforts remain unsuccessful.

The Key Stages in Debt Collection

The debt collection process follows three primary stages: pre-legal, legal, and debt enforcement. The pre-legal stage involves sending reminders, making phone calls, or using various communication strategies to alert the debtor about the overdue payment. If these efforts don't result in payment, a more formal approach is initiated.

The legal saga of debt collection is the second stage. Much sterner methods are employed during this stage. Debts might become public records, impacting the debtor's credit and reputation. There is also the possible initiation of a debt lawsuit. Remember, any legal action complies with state-ordained laws, such as the ones governing debt collection in South Dakota.

If legal actions are unable to cause the debtor to settle their dues, the process escalates to the final stage: debt enforcement. This might involve wage garnishment, property seizures, or other court-directed measures to ensure repayment. It's crucial to note that while these stages largely remain the same across different jurisdictions, specific rules and guidelines in a particular state - like South Dakota - can and do influence how these stages unfold.

New to debt collection?
The debt collection process can be complex and daunting for those new to it. Our team of experts is here to help you understand the process and navigate it with ease. Get free expert advice on your specific case, provided by our team of experienced professionals.

Debt Collection Laws In South Dakota

Debt collection in South Dakota is regulated by a mix of federal and state laws. At a federal level legislation such as the Fair Debt Collection Practices Act (FDCPA), the Fair Credit Reporting Act (FCRA), and the Telephone Consumer Protection Act play key roles in dictating how collection agencies can impact credit ratings and interact with debtors. These laws protect consumers from abusive, deceptive and unfair debt collection practices by lenders and collections agencies.

The main provisions in the FDCPA cover areas such as contact, harassment, and representation. The law prohibits debt collection contact at inconvenient times and places, including early in the morning or late at night without permission. It stops collectors from using abusive or deceptive tactics to collect debts. Additionally, it mandates that if a consumer has a lawyer representing them, debt collectors must communicate with the lawyer, refusing direct contact with the debtor.

In terms of oversight, the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC) are the two main regulatory bodies. They enforce federal laws related to debt collection and investigate complaints of malpractice from consumers.

State Laws and Regulations

South Dakota has its own specific state laws governing debt collection. These laws interact with federal legislation to form a structured framework for collections. In South Dakota, the statutes of limitations for collection of an open account or breach of contract is six years, while for breach of contract on a sale of goods under the Uniform Commercial Code, it is four years. Judgments can be docketed and become a lien on all real property owned by the judgment debtor for a period of ten years, and can be renewed for an additional ten years.

There is one notable aspect of South Dakota's state law that stands out. If a person fraudulently issues a check which gets rejected for insufficient funds, it triggers a state statute. The defaulting check issuer is then liable to the holder for an amount equivalent to three times the face value of the check, with a minimum liability of $100 and a maximum of $200.

Interest is also regulated in South Dakota. Pre-judgment interest is awarded at either the contract rate or the statutory rate, currently 10 percent per annum. Post-judgment interest applies to all judgments at the statutory rate. Award of attorney's fees is permissible when there is a contractual agreement or a specific statute authorizing it. Garnishment is also allowed with restrictions, limited to 20 percent of the debtor's disposable income.

Important Collection Opinions and Laws

Some key points worth noting in South Dakota's collection laws include the awarding of attorney's fees when there is a contractual agreement or a specific statute authorizing it. There's also the requirement for a creditor to notify a debtor of strict compliance with contract terms before lawfully repossessing collateral after accepting late payments. Additionally, South Dakota imposes sales tax on attorney's fees, with both state and municipal sales tax applying.

It is important to note that South Dakota does not have a state consumer protection act or a fair debt collection act. As a result, the rules of civil procedure and case law provide the legal guidelines for collections, with no more stringent requirements than those set forth in the FDCPA or similar federal laws. There is also no special licensing or bonding requirement to practice debt collection in South Dakota.

The filing fee for a civil case in South Dakota county circuit court is $70, while small claims court has a graduated scale of fees depending on the amount sought. This includes a $5 charge for a writ of execution and the sheriff's execution fee at $35. So, regardless of the amount of debt, the legal proceedings are affordable and accessible to all parties.

Overall, South Dakota's debt collection laws balance the rights and protections of consumers with the legitimate interests of creditors. These laws work in tandem with federal regulations to provide a robust framework that governs the interactions between debtors and creditors, ensuring fairness, transparency, and justice in all transactions.

Risk Free Debt Collection

Upload your claim and get started with our 100% no-cure-no-pay collection solution.

100% free
Get the best price
Fast collection process
High recovery rate
Risk free
Upload claim!

Statute of Limitations in South Dakota

Understanding the concept of a statute of limitations is crucial when discussing debt collection activities. A statute of limitations is a law that sets the maximum time that parties involved have to initiate legal proceedings from the date of an alleged offense. In context of debt, it pertains to how long a creditor has the legal right to collect a debt from a debtor.

The significance of these statutes in the scope of debt collection cannot be overstated. When the set period of time expires, the debtor is legally protected from being sued for the debt by the creditor. It does not eradicate the debt, but purely limits the legal remedies available to the creditor. These periods vary widely from state to state and depend on the type of debt involved.

South Dakota, like every other state, has its own specifications for different types of debt. These are elucidated in S.D. Codified Laws Ann. § 15-2-1 et seq. It is important to note that exceeding these time limits can infringe a debtor's rights and such cases can be defended on the grounds of expiry of the limitation period.

Different Types of Debt and their Statutes of Limitations

Written contracts in South Dakota have a statute of limitations of six years. This category includes written contractual agreements like those for personal loans, credit cards and mortgages. This means that once a debt from a written contract becomes due, the creditor has six years to take legal action to collect that debt.

Oral contracts also fall under a six-year limitation period in South Dakota. These are often harder to prove as they involve agreements made verbally, without any written evidence. However, the six-year time frame still applies, providing creditors the same amount of time to proceed with legal action as in the case of written contracts.

For injury cases, the limitation period is shorter, clocking in at three years. This includes personal injury arising from incidents such as car accidents or slip and fall accidents. If there's a delay beyond this period, the courts could potentially dismiss the case due to the expired statute of limitations.

Lastly, property damage cases have a time limit of six years, the same as for contracts. This time limit applies to any actions to recover damages to your property, such as suits for repair costs after an auto accident or for damage caused to your home.

In summary, understanding the statute of limitations in South Dakota is imperative for both creditors and debtors. It governs the timeline of legal procedures and safeguards debtors against undue litigation. Knowing these time limits helps avoid prolonged and redundant debt recovery processes, and offers a better chance at receiving timely legal justice.

Interest Rates on Late Payments in South Dakota

Understanding the interest rates applied to late payments is a crucial part of grasping the full picture of debt collection practices. When a payment on a debt is missed or delayed, typically an interest charge is added to the amount due. These interest rates, which may vary by state and the type of agreement in place, increase the total debt over time, eventually leading to an even larger amount payable by the consumer.

In the context of South Dakota, this presents some unique insights. The state's interest rate laws are generally deferential to the agreement set by contract, effectively bypassing statutory limits. A notable exception to this is a rigid 12 percent limit imposed on judgments. However, through consenting to an agreement online or signing a physical contract, consumers may inadvertently sign off to higher rates. While this certainly undermines any defined usury law intended to prevent overly high interest rates, it does provide legal latitude for both the consumer and the creditor

South Dakota caps the legal maximum interest rate at 15 percent unless modified by an agreement. However, a thorough understanding of contractual terms is crucial because borrowers often permit issuers to retrospectively raise interest rates. For consumer loans under $5,000, special regulations apply pertaining to how they can be made and other related aspects. In addition to these, there are rules that apply exclusively to loans from state chartered institutions like banks, savings and loans, and credit unions.

Avoiding Elevated Interest Rates

To avoid incurring substantial interest rates or entering into an unfavorable agreement, a clear comprehension of the terms beforehand is pivotal. Overly high interest rates can be skirted by preventing credit card debt. While this seems straightforward, the reality can prove more challenging. However, relief provisions under federal law can provide an additional layer of protection for consumers with credit card debt.

Navigating these interest rates on late payments begins with understanding the terms and implications of an agreement. Armed with this knowledge, consumers can mitigate the risks and protect their financial health. It is important to note that state laws are subject to change, making it vital to stay updated or consult a South Dakota consumer protection attorney.

The stipulations on interest rates in South Dakota, while unique, are not insurmountable. By comprehending agreed interest rates and maintaining a proactive approach towards credit card debt, consumers can make informed decisions about their financial obligations. Despite the latitude creditors have in South Dakota, consumers are not without their own layers of protection and can use these to their advantage.

Late Payment Fees in South Dakota

With any debt collection process, late payment fees hold significant importance. They are the charges that accrue on any past due balance or late invoice. These fees incentivize both the debtors to pay their outstanding balances on time and the creditors to collect their debts as quickly as possible. Particularly in South Dakota, there is a unique framework governing late payment fees which all businesses should understand.

In many industries, it is commonplace to have waiting periods or grace periods acting as a buffer for the debtors before any penalty is attached to the overdue balance. This additional time may be anywhere from a few days to a month and provides the debtor extra time to settle the amount to avoid additional charges. However, South Dakota does not require such a grace period leading to immediate application of late payment fees as soon as a payment is overdue.

Moreover, maximum late fee limits are generally set out by the state laws but this isn’t the case in South Dakota, where there is no predetermined maximum limit for these fees. This provides businesses with increased flexibility when it comes to managing their debt collection processes. It is, however, recommended best practice that businesses allow a self-imposed grace period of at least seven days.

Understanding the Importance of Late Payment Fees

Understanding late payment fees in South Dakota is crucial for businesses as it directly impacts their debt collection process. Lack of a maximum cap can lead to more aggressive collection of debts, but it does not give businesses the license to impose unreasonably high fees. A fair practice could not only strengthen the business-client relationship but can also prevent any potential reputational damage.

It is equally important for businesses to professionally communicate this lack of a grace period to debtors. This clarity not only protects businesses legally but also reassures the clients about the transparency and integrity of the operations. Even though the state law doesn’t mandate a grace period, it is encouraged that businesses give their clients an additional seven days before levying late payment fees.

In conclusion, efficiently managing debt collection and late payment fees in South Dakota requires an understanding of the local regulations, implementation of fair practices, and clear communication with the customers. Business strategies centered around these principles are the way forward not only in enhancing recovery processes but also in maintaining quality relationships with clients.

Small Claims Procedures in South Dakota

When seeking to recover a small debt in South Dakota, one may turn to a legal process known as Small Claims Procedure. This process, instituted in the state's Circuit or Magistrates Court, provides a simplified and cost-effective means to resolve disputes pertaining to debts, damages, or property. While it lacks the complexity of a full-blown lawsuit, its nuances and limits must be understood before pursuing a small claims action.

The primary authorized references for the small claims procedures in South Dakota are embedded in the Statutes: S.D. Codified Laws Ann. §§ 15-39-45 to 15-39-78; 16-12B-6; 16-12B-12; 16-12B-16; 16-12C-8; 16-12C-13 to 16-12C-15. Detailed versions of these statutes can be accessed at

The maximum monetary limit for small claims proceedings in South Dakota is $12,000. This means that if the value of the debt or damage being claimed is no more than this amount, the case can be managed under small claims procedures. Cases exceeding this dollar limit would require a different legal path.

Filing a Small Claim

Claims, under small claims procedures, should be lodged in the county where any defendant resides or where the transaction or injury occurred. In the instance where the defendant is a corporation, partnership, or LLC, the claim can be lodged in any county where the defendant operates a business.

It's essential to serve a process rightly. At first, this is attempted through certified or registered mail with return receipt requested. If unsuccessful, the court then determines an alternative service method. If the plaintiff opts not to pursue further notification or if it remains unsuccessful after 90 days, the claim may be dismissed without prejudice.

The onus is on the defendant to adhere to the instructions provided in the notice; failing to do so could result in a default judgement. Their outline of defense should be submitted as stipulated in the notice, which will then be recorded as their answer on the docket.

Court Representation and Transfers

While attorneys are permitted in small claims proceedings in South Dakota, they are not a requirement. However, cooperation with competent legal counsel is advised, particularly in complex cases, to ensure the best possible outcome.

If a defendant perceives the need for a trial by jury or desires the claim to be handled outside of the small claims court, they must request a transfer to the circuit court at least five days prior to the trial date. This petition must be accompanied by a justifying affidavit. These transfers, however, can introduce additional cost and complexity to the dispute.

Judgement and Appeals

Evictions are not managed under small claims proceedings in South Dakota, and jury trials are not permitted. In the event of an unfavorable judgement, a party may file a “Motion to Vacitate Judgment” alleging error or, in cases where they were not duly served the claim. This action requests the court set aside the judgement.

Appeals in the traditional sense are not allowed in small claims court. Recognizing this, careful consideration should be given before opting to pursue a claim through these procedures, given the finality of the judgement.

Wage Garnishment in South Dakota

Wage Garnishment is a legal procedure through which a portion of a debtor's earnings are withheld by an employer for the repayment of a debt. This can serve as an effective means of recovering outstanding debts and is generally considered as a last resort by creditors when other collection methods have failed.

South Dakota, like many other U.S. states, has specific rules and regulations surrounding wage garnishment. These are designed to protect both the rights of the debtor and the interests of the creditor. It's important to understand these rules to ensure fair and lawful procedures are being followed.

Creditors can't initiate a wage garnishment without first securing a court judgment against the debtor. Once this judgment is obtained, the creditor may request the court to issue a wage garnishment order, which is then sent to the debtor's employer.

Specific Rules for Wage Garnishment in South Dakota

In South Dakota, the law places a cap on the amount that can be garnished from a debtor's wages. The maximum amount that can be withheld is the lesser of 25% of an individual’s weekly disposable earnings or the amount by which an individual's disposable earnings for a week exceed forty (40) times the minimum hourly wage prescribed by federal law. Disposable earnings refer to the wages left after all legally mandated deductions are made.

This cap is applied to ensure that despite the garnishment, the employee still has sufficient income to meet basic living needs. Furthermore, it ensures that the collection process is carried out in a fair and balanced way, preventing extreme financial hardship for the debtor.

Employers are required by law to comply with wage garnishment orders. Employers who fail to adhere to these orders may be subjected to penalties or be held responsible for the debts themselves. Debtors who believe their wage garnishment has been improperly or unfairly executed may also have legal recourse to challenge the order.


Striking a balance between the rights of the debtor and the interests of the creditor, the wage garnishment procedure in South Dakota maintains a unique role in the realm of debt collection. Understanding the rules and regulations behind this process can ensure fair dealings and safeguard the rights of all parties involved.

Although it can be a daunting process, with the necessary knowledge, both debtors and creditors can navigate successfully through the wage garnishment landscape in South Dakota.

Wage garnishment is only one of the debt collection methods used in South Dakota. Learning about other strategies and methods can broaden the understanding of the entire debt collection process in this state.