South Dakota Debt Collection Summons (2022 Guide)

South Dakota allows creditors to send your unpaid debts to collection agencies. This can happen with credit card debt, utility bills, or car loans. The agency will contact you and ask for payment through phone calls or letters. While this process can be stressful, there are ways to handle it so that you can stay calm.

In this midwestern state, you must respond to a debt collection summons within 30 days. Ignoring the timeline can result in a default judgment, which means the court can determine the validity of your debt, and the plaintiff will win the case without your presence in court. Don’t let this happen – take action now and avoid a default judgment.

Answer to summons in South Dakota

After you receive a debt collection letter or phone call, your first step should be to validate the debt. You can do this by confirming information about the collection agency, such as its name and contact information. Once you have done this, you can request a debt validation letter from them.

When you receive a validation letter from a debt collector, it is essential to take some time to understand the situation. The letter will include details about the amount you owe and the original creditor’s name. It is necessary to read over the letter carefully and decide whether or not you dispute the debt.

There are a few steps you can take depending on your situation. For example, you may notify the debt collector in writing that you do not owe the debt. On the other hand, negotiating a payment plan or timeline for repayment may be a better option for those who do owe the debt. Regardless of your decision, be sure to act swiftly and confidently.

As you work through your debt, it’s essential to be aware of the Statute of Limitations on various obligations in South Dakota. This is the amount of time a creditor has to take legal action against you for non-payment.

South Dakota debt collection summons filing fees

Are you being pursued by a debt collector? There are two options for where to file your summons in South Dakota. For debts under $12,000, you can file in Small Claims Court. Filing fees in Small Claims Court vary depending on several factors. Otherwise, you can file in any circuit court for a fee of $70.

A small claims action in South Dakota can be transferred to a Circuit Court, but you will have to pay a higher fee of $35. However, this is only possible for cases seeking between $4000 and $12,000. You cannot appeal a small claim to either state’s Supreme Court or Circuit Court.

The process of serving debt collection complaints and summonses varies depending on the Circuit Court. However, most cases require using a private process server or county sheriff. The service fee for this ranges between $30 and $50. Additionally, the court will typically serve the Notice of Small Claims by mail.

The court will issue a Writ of Execution upon obtaining a judgment. This writ includes a sheriff’s execution fee of $35 and a writ execution fee of $5. The purpose of the Writ of Execution is to enforce a particular judgment. In addition to the prices mentioned, the sheriff may charge a percentage of the total amount successfully levied and given to the creditor.

Debt collectors who garnish wages in South Dakota must be reimbursed for their expenses incurred while preparing the garnishment disclosure form. This amount, not to exceed $15, can be included as part of the debt the creditor is trying to recover from you.

How to respond to a debt collection case in South Dakota

When you receive a summons for debt collection, act quickly to prevent the court from ruling in favor of the plaintiff. In South Dakota, follow these steps to respond to a summons:

Respond to each complaint issue

Answering a complaint can be difficult, but it doesn’t have to be. All you need to do is read and understand the complaint, then respond accordingly with the following answer:

• Agree
• Disagree
• I don’t know

Make affirmative defenses

You will need to provide convincing arguments to persuade the court that you do not owe any debt to the plaintiff. This will involve providing evidence and explaining why you believe you are not liable for any payment.

Some relevant defenses to include are:

Identity theft: One way to defend yourself against identity theft is to show that you did not incur the debt in question through impersonation. To do this, you will need to provide convincing evidence to the court, including police and credit card reports and affidavits of forgery.

Amount of debt in dispute: The defense of “disparity in the debt amount” applies when the debt collector suing you differs from the amount you believe you owe. The disparity between these two amounts can be caused by several factors, including:

• Creditors’ failure to compute payments.
• Incorrect calculations on interest.
• Wrong dates on calculated amounts.
• Inclusion of other false charges.

South Dakota Statute of Limitations: In South Dakota, the statute of limitations for most debts is six years. This includes mortgage debt, credit card debt, and medical debt. Once the statute of limitations expires, a debt collector can no longer pursue legal action against you. However, any payment toward your debt can reactivate the statute of limitations.

Contract cancellation: A contract with the creditor may entitle the debtor to an affirmative defense. In this case, the debtor would need to allege that the plaintiff failed to uphold their end of the agreement, which resulted in the debt.

Discharge of debt in bankruptcy: A debt collector who attempts to collect a debt discharged in default may be sued for violating it.

Cleared debt: The debt in question can be settled by making a partial payment or arguing your defense.

Lack of information: This defense is relevant if you were a co-signer to a loan or debt you’re being sued for but did not have enough information on your rights as a co-signer.

No special licensing or bonding is required to collect debts in South Dakota. You cannot argue that the debt collector has no license or that they failed to allege licensure in the complaint, as you would in other states.

You must file your answer in court and serve the plaintiff with it

In South Dakota, you will need to file your answer in person or by mail if you do not have an attorney. To do this, you must mail a copy of your response to the plaintiff’s attorney and another to the court and then pay the court’s filing fee.

However, one of the most accessible options to answer a debt collection summons in South Dakota is using the services provided by Crixeo. Since debt collection laws are pretty complicated, SoloSuit makes filing easy by doing it correctly.

The rules and regulations of South Dakota debt collection

Although most states have adopted the federal regulations for debt collection outlined in the Fair Debt Collection Practices Act (FDCPA), a few have not. One of these is South Dakota, which has only allowed a maximum of 15 percent on legal interest rates and 12 percent on judgment penalties. This lack of regulation can confuse and frustrate consumers, so it’s essential to know your rights under the FDCPA.

In this state, the government regulates debt collection practices to protect consumers. Violations of these regulations can result in penalties of up to $1000 and court fees. This means that laws dictate how debt collectors must behave and what actions they can take.

According to the FDCPA, a debt collector in South Dakota cannot:

• Contact me before 8.00 am or after 9.00 pm.
• Contact your friends or family except to inquire about your contact details.
• Contact anyone else to discuss your debt except you, your attorney, or your spouse.
• Contact you further if you have stated in writing that they cease communicating.

Further, the law prohibits a debt collector from:

• Making false claims or statements regarding the name of their company, who they represent, or the amount you owe.
• Sending documents that appear legal or official when they are not.
• Threatening to garnish your wages, arrest you, seize your property or pursue legal action against you unless they intend to follow through and are legally permitted to do so.
• Harass you, including using abrasive language.

South Dakota garnishment of wages

Debt collectors in South Dakota are subject to more restrictions regarding wage garnishment than under federal law. For example, the state allows garnishment of a maximum of 20 percent of disposable income only when the court has ruled that it is the best way to enforce a specific ruling. By comparison, federal law permits garnishment of up to 25 percent of non-exempt wages.

A garnishment summons is a legal notice served to you by a debt collector, informing you that they have the right to collect on debt through your income. The law entitles the debt collector to a 120-day lien on your income, meaning they can take action to collect the debt owed. Knowing your rights and obligations in this situation is essential as the judgment debtor.

As a result of a garnishment order, your employer will hold back a portion of your income until the debt collector serves an additional release order. Once filled, all held funds must be given to the creditor. The debt collector can renew the lien on your wages for another 120 days after serving another garnishment disclosure form.

According to law, you have five days to claim exceptions after being served in person or eight days by mail. Failing to claim exceptions within this time frame will result in a waiver of said exceptions. Additionally, failing to respond to a garnishment summons within 30 days may allow a collector to obtain a supplemental judgment against you.

South Dakota’s statute of limitations

In South Dakota, different statutes of limitations apply to various debts. As a result, knowing which statute of limitations applies to your debt is essential to understand your legal rights and options.

Different creditors may have other deadlines for taking legal action against you to collect their debt. In some cases, creditors may be able to renew their debt claim against you even after the statute of limitations has expired. Once the Statute of Limitations has expired, the creditor can still contact you to try and collect the debt. Still, they cannot take any legal action.

It is essential to understand that just because the statute of limitations has expired on your debt, it does not automatically cancel the debt. The collection accounts will still appear on your credit report for up to seven years from your first defaulted payment date.

A debt collector may not contact you regarding a time-barred debt. You can request in writing that the debt collector cease communication with you.

South Dakota debt management tips

You can use several strategies to pay off your debt without having to take out expensive loans that will only worsen your debt problems. Consider the following options to get rid of your debt for good.

Consolidating your debt: Debt consolidation can be a great way to make meeting your monthly debt obligations easier. However, you need to be careful and understand your new loan’s interest rates and repayment terms, as consolidating your debts can sometimes lead to paying more in interest and extending your repayment period.

Debt Refinancing: There are many ways to get better loan terms and lower interest rates on debts, including refinancing your student loans, mortgage, and auto loan. Refinancing involves negotiating for a new loan to service an already existing debt. This can be a great way to get more favorable repayment terms. However, it’s important to note that payments are not necessarily consolidated into a singular monthly payment when refinancing. Nevertheless, as long as you have a good credit score, you should be able to get approval for a new loan with much better terms.

Balance transfer card: A balance transfer can help reduce the interest paid on your debt and help pay it off faster. This is done by transferring your existing debt to a new credit card with more favorable terms.

South Dakota legal aid organizations

Several legal aid organizations and debt relief programs are available to residents of South Dakota. These services can provide valuable assistance to those facing a dire debt situation.

Some of the South Dakota legal aid organizations that may be able to help include:

• Freedomdebtrelief; this organization has a debt relief and consolidation program available to South Dakota residents. It provided debt consolidation services.
• lsssd.org; this organization has chapters in South Dakota and other states. You can contact them for individual budget counseling, debt management, and debt education services.
• Moneyfit; you can contact this organization for debt relief services, emphasizing credit card debt and other unsecured debts.

As a South Dakota resident, you have options for dealing with unmanageable debt. You can follow the steps detailed in this article to navigate your debt collection summons successfully.

One of the most important things you can do to prevent your debt situation from worsening is to take advantage of available resources.