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 tactics 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, unfair, and abusive practices by third-party debt collectors when collecting certain types of debt, such as credit card debt, auto loans, medical bills, student loans, and personal loans. In South Dakota, creditors may attempt to collect debts themselves or hire third-party debt collectors. Additionally, creditors can sell debts to other entities, which then become the new creditors. These entities must also comply with the FDCPA. South Dakota's state laws also provide protections for consumers, which may include statutes of limitations on how long a creditor has to collect a debt and regulations on how and when a debt collector can contact a debtor. It's important for consumers to know their rights under both federal and state laws to ensure they are treated fairly in the debt collection process.