South Carolina Debt Collection Laws: Know Your Rights
South Carolina's Consumer Protection Code gives you powerful rights against debt collectors. You can sue violators for damages and penalties. The three-year statute of limitations on credit card debt means collectors can't sue you forever.
Get Free CounselingSouth Carolinians have strong protections against aggressive debt collectors. The state’s Consumer Protection Code shields you from harassment, deception, and unfair practices. Both original creditors and third-party collection agencies must follow these rules.
You have the right to sue violators. The statute of limitations for credit card debt is three years in South Carolina.
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Get Your Free PlanSouth Carolina Debt Collection Laws Explained
The South Carolina Consumer Protection Code provides major consumer protections for people facing debt collection. The federal Fair Debt Collection Practices Act (FDCPA) also protects you.
Consumer Protection Code Safeguards
The Consumer Protection Code (CPC) prohibits specific collector behaviors:
- Threatening criminal prosecution
- Using or threatening force or violence
- Repeatedly calling you or calling at odd hours
- Calling your workplace after you’ve requested they stop
- Discussing your debt with unauthorized third parties
- Using obscene or profane language
- Misrepresenting any aspect of your debt amount
- Pretending to be government employees or attorneys
The CPC gives you the right to sue collectors who violate these rules. Your lawsuit can result in court injunctions and damage compensation.
Unlike federal law, the CPC applies to everyone collecting debt. Original creditors and collection agencies must both comply.
Federal FDCPA Protections
The FDCPA mirrors many CPC protections. But it only applies to third-party debt collectors, not original creditors.
Debt collectors cannot:
- Harass, oppress, or abuse you
- Make false or misleading statements
- Use unfair practices to collect debt
- Contact you before 8 a.m. or after 9 p.m.
- Contact you at work if they know your employer prohibits it
- Discuss your debt with others except your attorney
The FDCPA requires debt collectors to:
- Send written validation notices within five days
- Stop contacting you if you request it in writing
- Verify debts if you dispute them
- Identify themselves in every communication
Fighting Back Against Illegal Collection Practices
You have options when a debt collector violates South Carolina law. Start by filing a complaint. You can also sue for damages.
First, file a complaint with the South Carolina Department of Consumer Affairs. You must wait at least 30 days after reporting before filing a lawsuit.
You can then sue the collector or creditor. If you prove unconscionable conduct, you can recover actual damages, attorney fees, and penalties from $100 to $1,000.
Under South Carolina’s Unfair Trade Practices Act, willful violations bring even more consequences. You may receive triple your actual damages plus attorney’s fees and costs.
Time Limits for Debt Collection Lawsuits
Statutes of limitations limit how long collectors can sue you. After this period expires, collectors shouldn’t file lawsuits. They sometimes still do, but the statute of limitations provides a strong defense.
Credit card debt and medical debt have a three-year statute of limitations. Once three years pass, collectors lose their right to sue you.
Here are the time limits for other debt types:
| Debt Type | Statute of Limitations |
|---|---|
| Open Accounts (credit cards) | 3 years |
| Promissory Notes | 3 years |
| Contract of Sale | 6 years |
| Mortgage | 20 years |
Be careful when contacted about old debts. Admitting you owe the debt or making any payment can restart the statute of limitations. Even a small payment resets the clock.
What Debt Collectors Can Legally Do in South Carolina
South Carolina has strict regulations, but collectors still have tools. They can use several legal strategies to collect what they claim you owe.
Collection efforts typically start with phone calls and written notices. For car loans more than 30 days past due, they may repossess your vehicle. If these tactics fail, they may sue you.
Lawsuits give collectors access to aggressive collection measures. Wage garnishment is their top tool after winning in court. They need a court order first, and state laws limit how much they can take.
If you don’t have wages, they may levy your bank account instead. They can also place liens on your property.
Getting sued requires a response. Don’t ignore the lawsuit or you’ll lose by default. Our partner Solo has helped over 280,000 people respond to debt lawsuits and negotiate settlements. They offer a 100% money-back guarantee.
Debt Relief Options in South Carolina
Consumer debt is common in the U.S. So is debt collection. State and federal laws protect you from harassment during collection.
If collectors contact you regularly, you need a plan. Professional support can help you escape the debt cycle.
Start with a free session with a nonprofit credit counselor. These professionals understand budgeting and debt relief options. They’ll review your budget, debt, and financial goals. They’ll explain your options for getting back on track.
Our partner Cambridge Credit Counseling offers free credit counseling services. Debt management plans may have fees, but costs are typically low. These plans can reduce your interest rates and monthly payments significantly.