South Carolina Debt Collection Laws: Your Rights When Collectors Call

South Carolina gives you stronger protections than most states. While the federal Fair Debt Collection Practices Act only covers third-party debt collectors, the South Carolina Consumer Protection Code (CPC) applies to everyone—original creditors, collection agencies, debt buyers, all of them. If a creditor crosses the line, you can file a complaint and potentially sue for damages.

You also need to know the three-year statute of limitations on credit card debt. After that window closes, collectors lose the legal right to sue you. That deadline matters more than most people realize.

What the Consumer Protection Code Bans

The CPC lays out specific rules debt collectors cannot break. These apply whether you owe $500 or $50,000, and whether the collector is a giant agency or your original credit card company.

Harassment Tactics

Collectors cannot call you repeatedly with the intent to annoy or harass. They cannot call at unreasonable hours,generally before 8 a.m. Or after 9 p.m. In your time zone. If you tell them not to call you at work, they must stop.

They cannot use profane language, threaten violence, or threaten criminal prosecution. Debt is a civil matter. No collector can have you arrested for unpaid bills.

Deceptive Practices

Collectors cannot lie about who they are. If they claim to be an attorney or government official when they're not, that violates the CPC. They cannot misrepresent the amount you owe, the status of your debt, or the consequences of not paying.

They cannot threaten to take your wages or property unless they actually have a court judgment allowing them to do so. Empty threats count as deception.

Privacy Violations

Debt collectors cannot discuss your debt with third parties. That means no calls to your boss, your neighbor, or your family members (except a spouse or attorney). They can contact third parties only to locate you, and even then, they cannot reveal that they're collecting a debt.

How South Carolina Goes Further Than Federal Law

The federal FDCPA protects you from third-party debt collectors,agencies that buy your debt or collect it for someone else. But it does not cover original creditors. If Chase or Capital One calls you directly, the FDCPA doesn't apply.

South Carolina closes that gap. The CPC covers all creditors and collectors, no matter who holds the debt. That's a significant advantage. If your original credit card company harasses you, you have legal recourse under state law.

The Three-Year Statute of Limitations

South Carolina gives creditors three years to sue you for unpaid credit card debt, medical bills, and most other written contracts. The clock starts on the date of your last payment or the date you last used the account,whichever came later.

Once that three-year window closes, the debt becomes time-barred. Collectors can still contact you and ask for payment, but they cannot sue you in court. If they do file a lawsuit after the statute of limitations expires, you have an absolute defense. Show the court that the debt is too old, and the case gets dismissed.

Watch out for one trap: making a payment or even acknowledging the debt in writing can restart the clock. If you're close to the three-year mark, consult an attorney before you respond to a collector.

What to Do When a Collector Violates the Law

If a creditor or debt collector breaks the rules, you have two options: file a complaint or file a lawsuit. You must start with the complaint.

File a Complaint First

Before you can sue, South Carolina requires you to file a complaint with the South Carolina Department of Consumer Affairs. You can submit your complaint online at consumer.sc.gov.

The department will investigate. They have at least 30 days to look into your claim. If they resolve the issue, great. If not, you can move forward with a lawsuit.

Sue for Damages

After the 30-day waiting period, you can sue the collector in South Carolina court. If you prove the collector engaged in unconscionable conduct,behavior that's grossly unfair or deceptive,you can recover:

• Actual damages for financial harm or emotional distress
• A penalty between $100 and $1,000
• Attorney fees and costs

If the violation was willful or knowing, you may also recover under South Carolina's Unfair Trade Practices Act. That law allows triple damages if the court finds the creditor knew they were breaking the law. That means if you lost $2,000 because of their illegal behavior, you could recover $6,000.

You don't need to hire an attorney to file a lawsuit, but it helps. Many consumer rights attorneys work on contingency,they only get paid if you win, and the collector pays their fees.

How to Stop Collection Calls Legally

You have the right to tell collectors to stop calling you. Send a cease-and-desist letter by certified mail. Keep a copy and the delivery receipt.

Once the collector receives your letter, they must stop contacting you, except to confirm they've received the letter or to notify you of a specific action, like filing a lawsuit. If they keep calling after that, they've violated the CPC.

One caution: telling a collector to stop calling doesn't make the debt disappear. They can still sue you. If you're facing a lawsuit, don't ignore it. Respond to the summons and consider bankruptcy if the debt is overwhelming.

What Happens If a Collector Sues You

If a debt collector files a lawsuit, you'll receive a summons and complaint. You typically have 30 days to respond. Do not ignore this.

If you don't respond, the court will likely issue a default judgment against you. That gives the collector the power to garnish your wages, freeze your bank account, or place a lien on your property.

When you respond, you can raise defenses. Common defenses include:

• The debt is past the statute of limitations
• You already paid the debt
• The collector cannot prove you owe the debt
• The amount they claim is wrong

If the debt is legitimate and you can't afford to pay, filing for bankruptcy may be your best option. Chapter 7 bankruptcy wipes out most unsecured debts, including credit cards and medical bills. Chapter 13 lets you repay what you can afford over three to five years.

When Bankruptcy Makes Sense

Bankruptcy stops collection activity immediately. Once you file, the court issues an automatic stay that prohibits creditors from calling you, suing you, or garnishing your wages.

If you're being sued or if your wages are already being garnished, bankruptcy can halt the process. In a Chapter 7 case, you can often discharge the debt entirely within four months. In a Chapter 13 case, you make affordable monthly payments and then discharge whatever remains unpaid.

Bankruptcy does affect your credit, but so does a judgment. If you're already drowning in debt, bankruptcy gives you a clean start. You can check if you qualify using our free bankruptcy screener.

Document Every Violation

If a collector is harassing you, start building your case. Keep records of every interaction:

• Save voicemails. Record the date, time, and what they said.
• Screenshot text messages. Include the sender's number.
• Log phone calls. Note the caller's name, company, and whether they left a message.
• Keep letters. Save any written correspondence, including envelopes with postmarks.

This documentation strengthens your complaint and your lawsuit. The more evidence you have, the harder it is for the collector to deny their behavior.

What About Medical Debt?

Medical debt follows the same rules as credit card debt. The three-year statute of limitations applies. Collectors cannot harass you, misrepresent the amount you owe, or call you at unreasonable hours.

One difference: many hospitals and medical providers are original creditors, so the FDCPA doesn't cover them. But the CPC does. If a hospital billing department breaks the law, you can file a complaint and sue under state law.

Medical debt is also dischargeable in bankruptcy. If you're facing a pile of hospital bills you can't pay, bankruptcy may be the fastest way to eliminate them.

Know Your Rights, Use Your Rights

South Carolina gives you real tools to fight back against abusive debt collectors. The CPC covers original creditors and collection agencies alike. The three-year statute of limitations can shut down old lawsuits. And if a collector breaks the law, you can sue and recover damages.

If you're overwhelmed by debt and collection calls won't stop, bankruptcy may be the reset you need. It stops lawsuits, ends garnishments, and gives you a path forward. You don't have to live under the weight of debt you can't pay.