Debt collection is the process by which a person or entity who is owed money or property seeks payment for the debt. Debt collection may be performed by the person or entity who is owed the debt (the creditor), or may be performed by a third-party debt collector hired by the creditor to collect the debt on behalf of the creditor. Sometimes creditors sell the debt to another entity at a discounted value, and the entity that purchases the debt becomes the creditor.

Debts that are often the subject of debt collection efforts include (1) credit card debt; (2) car or auto loan debt; (3) medical debt; (4) student loan debt; (5) unpaid utility and telephone bills; and (6) personal loan debt.

If you owe money, you have a legal obligation to repay it. But state and federal laws—such as the Fair Debt Collection Practices Act—prohibit debt collectors from using deceptive or abusive behavior to collect the debt.

In South Dakota, debt collection is regulated by both state statutes and federal law. The Fair Debt Collection Practices Act (FDCPA) is a federal law that sets the standard for how debt collectors can operate nationwide, including in South Dakota. It prohibits deceptive, abusive, or unfair practices by third-party debt collectors when collecting debts. This includes restrictions on the times of day collectors can call, bans on harassment or abuse, and the requirement that collectors must cease communication if requested in writing. South Dakota also has its own set of laws that govern debt collection within the state, which complement the FDCPA. These laws cover various types of debts such as credit card debt, auto loans, medical debt, student loans, utility bills, and personal loans. Creditors in South Dakota may also sell debts to third-party collectors or debt buyers, who then become the new creditors and must adhere to the same collection laws. It's important for consumers to know their rights under these laws, and if they feel a collector has violated these standards, they may seek legal advice from an attorney or file a complaint with the appropriate agency.