South Carolina Debt Collection Laws: Know Your Rights
South Carolina law gives you strong protection against abusive debt collectors. The three-year statute of limitations and wage garnishment prohibition shield you from many collection tactics. Responding to lawsuits within 30 days and knowing your rights can stop collectors in their tracks.
Answer Your LawsuitDebt collectors in South Carolina must follow strict rules. You have powerful legal protections under federal and state law.
The debt collection industry has a reputation problem. Abusive collectors and scammers have made consumers wary of every call.
Sued by a Debt Collector in South Carolina?
You have only 30 days to respond to your lawsuit. Answer your Summons properly with attorney review and automatic court filing.
Respond to Your LawsuitGood news: Both federal and state governments protect you. The Fair Debt Collection Practices Act (FDCPA) governs how collectors communicate with you. The Fair Credit Reporting Act controls what they can report.
Understanding these laws gives you leverage. You can stop harassment, fight invalid debts, and protect your assets.
Who Qualifies as a Debt Collector in South Carolina
A debt collector is anyone who regularly contacts you about past-due accounts. They include collection agencies, debt buyers, and law firms.
Original creditors sometimes collect their own debts. Third-party collectors work on behalf of creditors for a fee or percentage.
All collectors must follow South Carolina law. No exceptions.
What Debt Collectors Cannot Do in South Carolina
South Carolina law puts clear limits on collector behavior. Breaking these rules has consequences.
They Cannot Sue You for Time-Barred Debts
Most consumer debts in South Carolina have a three-year statute of limitations. The clock starts when you miss your first payment.
After three years pass, collectors lose the right to sue you. The debt still exists, but they cannot take legal action.
| Debt Type | Time Limit |
|---|---|
| Credit Card | 3 years |
| Medical Bills | 3 years |
| Auto Loan | 3 years |
| Student Loan | 3 years |
| Mortgage | 3 years |
| Judgment | 10 years |
Warning: You can restart the clock on old debts. Making a payment or admitting you owe the debt reopens the statute of limitations.
Never acknowledge old debts without checking the timeline first. One wrong statement can cost you thousands.
They Cannot Harass or Threaten You
Collectors can only call between 8:00 am and 9:00 pm. Repeated calls designed to annoy you are illegal.
They cannot threaten you with jail time. Debt is a civil matter, not criminal.
They cannot use profane language or verbally abuse you. Every conversation must remain professional.
They Cannot Embarrass You Publicly
Your debt is private information. Collectors cannot discuss it with unauthorized parties.
They can contact others only to locate you. They cannot reveal why they are calling.
Sending postcards about your debt is illegal. Threatening to contact your employer or neighbors violates federal law.
They Cannot Lie or Mislead You
Debt collectors must tell the truth. Common lies include claiming to be attorneys or law enforcement.
They cannot inflate the debt amount. They cannot add unauthorized fees.
They cannot threaten actions they cannot legally take. Empty threats violate the FDCPA.
Report violations to the Federal Trade Commission. You can also sue collectors for damages.
What Debt Collectors Can Do in South Carolina
Collectors have legitimate tools to recover debts. Understanding their options helps you prepare.
They can call you during permitted hours. They can send letters and contact you through social media.
If you do not pay, they can sue you in court. Winning a lawsuit gives them a judgment.
Collection Remedies After a Judgment
A judgment allows collectors to pursue your assets. Options include bank account levies and property liens.
Good news: South Carolina prohibits wage garnishment for consumer debts. Collectors cannot take money directly from your paycheck.
Protected debts include credit cards, medical bills, car loans, and personal loans. Only government agencies can garnish wages for taxes or student loans.
Child support and spousal support are exceptions. Courts can order wage withholding for family obligations.
Judgments last ten years in South Carolina. Collectors cannot renew expired judgments like in other states.
How to Stop Debt Collectors from Calling You
You have the right to request debt validation. Send a written letter within 30 days of first contact.
A debt validation letter forces the collector to prove the debt is yours. They must provide documentation showing you owe the amount claimed.
Collections must stop while they gather proof. Many collectors cannot validate debts and drop them entirely.
Our partner Solo helps you create proper validation letters. You can also request they stop calling you altogether.
How to Respond to a Debt Collection Lawsuit in South Carolina
Ignoring a lawsuit is the worst mistake you can make. Collectors win by default when you do not respond.
You have 30 days to file your Answer. The countdown starts when you receive the Summons.
South Carolina courts do not charge filing fees for debt collection Answers. You may face other court costs during the case.
Step 1: Respond to Each Complaint Allegation
The Complaint lists specific claims against you. Common allegations include entering a contract and failing to pay.
You must respond to each numbered paragraph. Admit or deny each statement individually.
Deny anything you do not remember or cannot verify. The collector must prove their claims.
Step 2: Assert Your Affirmative Defenses
Affirmative defenses explain why you should not owe the debt. Common defenses include expired statute of limitations and identity theft.
Include all defenses in your Answer document. You cannot add them later in the case.
Other strong defenses include improper service, lack of standing, and failure to provide required documentation.
Step 3: File Your Answer on Time
Submit your Answer to the court before the 30-day deadline expires. Send a copy to the collector’s attorney by certified mail.
Keep proof of filing and delivery. Documentation protects you from default judgment claims.
Many collectors drop cases after receiving a proper Answer. Fighting back shows you are serious.
Our partner Solo walks you through creating your Answer step by step. An attorney reviews your document before filing.
How to Settle a Debt Collection Lawsuit
Settlement often costs less than the full debt amount. Collectors buy old debts for pennies on the dollar.
They will often accept 40-60% of the balance. Negotiation works best when you can pay a lump sum.
Get all settlement agreements in writing. Never pay without documentation stating the debt is settled.
Settling stops the lawsuit and protects your assets. You avoid judgment and potential bank levies.
Protect Your Assets from Debt Collectors
South Carolina exempts certain property from collection. Your primary residence has protection up to $50,000 in equity.
You can keep up to $5,000 in cash and liquid assets. Retirement accounts typically have full protection.
Understanding exemptions helps you evaluate settlement offers. Collectors cannot take protected assets even with a judgment.
What to Do If Collectors Violate Your Rights
Document every violation carefully. Save voicemails, record call times, and keep all letters.
File a complaint with the Consumer Financial Protection Bureau and Federal Trade Commission. State complaints with the South Carolina Department of Consumer Affairs.
You can sue collectors who violate the FDCPA. Successful claims can result in damages up to $1,000 plus attorney fees.
Violations include calling outside permitted hours, contacting third parties, and making false threats.