54-4-77. Debt collection--Prohibitions.
No person employed by a licensee to collect or attempt to collect any debt owed or due or asserted to be owed or due may:
(1)Harass, oppress, or abuse a borrower by:
(a)Using any threat of violence or harm;
(b)Publishing a list of names of borrowers who refuse to pay their debts absent providing such information to credit reporting companies;
(c)Using obscene or profane language; or
(d)Repeatedly using the phone with the intent to annoy borrowers;
(2)Use any false statement when attempting to collect a debt by falsely:
(a)Claiming to be an attorney or government representative;
(b)Claiming that the borrower has committed a crime;
(c)Representing that the licensee operates or any person employed by the licensee works for a credit reporting company;
(d)Representing the amount the borrower owes;
(e)Representing the nature and character of any forms sent to the borrower in order to collect a debt;
(f)Indicating that the borrower will be arrested if the debt isn't paid;
(g)Using a company name;
(h)Indicating that the licensee will seize, garnish, attach, or sell a borrower's property or wages unless the licensee is permitted by law to take the action and the licensee intends to do so;
(i)Indicating that legal action will be taken against the borrower, if doing so would be illegal or if the licensee does not intend to take the action;
(3)Give false credit information about the borrower to anyone, including a credit reporting company;
(4)Attempt to collect any interest, fee, or other charge on top of the amount a borrower owes unless the contract that created the debt or state law allows the charge;
(5)Deposit a post-dated check early;
(6)Take or threaten to take the borrower's property unless it can be done legally; or
(7)Cause misleading information to be transmitted to users of caller identification technologies or otherwise block or misrepresent the identity of the caller or entity as described in subdivision 37-24-6 (16).
Source: SL 2015, ch 242, §6; SL 2020, ch 171, § 5.
Structure South Dakota Codified Laws
Title 54 - Debtor and Creditor
Chapter 04 - Money Lending Licenses
Section 54-4-36 - Definition of terms.
Section 54-4-37 - Entities exempt from chapter provisions.
Section 54-4-38 - Promulgation of rules.
Section 54-4-39 - Compliance with Title 53.
Section 54-4-41 - Rejection or acceptance of application by director.
Section 54-4-42 - Bond to be filed with application.
Section 54-4-44.2 - Motor vehicle purchase loan--Fees incident to extension of credit.
Section 54-4-44.3 - Consumer default--Fees incident to extension of credit.
Section 54-4-44.4 - Business-to-business lending exempt.
Section 54-4-45 - Duration of license--Renewal.
Section 54-4-46 - Transfer of license--Approval required for name change.
Section 54-4-47 - Location to be licensed--Change of location.
Section 54-4-47.1 - Remote work--Requirements.
Section 54-4-48 - Cease and desist order for practice not in conformity to requirements--Appeal.
Section 54-4-49 - Conditions, denial, nonrenewal, suspension, or revocation of license.
Section 54-4-50 - Injunction against licensee for violation.
Section 54-4-51 - Court-appointed receivership.
Section 54-4-52 - License required.
Section 54-4-53 - Deposit of funds.
Section 54-4-54 - Payment of annual tax--Exemption.
Section 54-4-55 - Exemption from other taxes.
Section 54-4-56 - Renewal of application--Tax information--Forms.
Section 54-4-58 - Information required in contract.
Section 54-4-59 - Property insurance required.
Section 54-4-60 - Purchase of insurance not condition to receive loan.
Section 54-4-61 - Copy provided to debtor.
Section 54-4-62 - Satisfaction of loan--Release of assignments.
Section 54-4-63 - Advertising.
Section 54-4-64 - Application of chapter.
Section 54-4-65 - Limitation on renewal, rollover, or flip of short-term consumer loan--Fee.
Section 54-4-66 - Maximum amount of payday loan--Violation as misdemeanor.
Section 54-4-68 - Appointment of resident agent for service of process--Notice.
Section 54-4-69 - Consent to be sued--Form.
Section 54-4-71 - Term of title loan--Renewal--Payment amounts--Deferred principal amount.
Section 54-4-73 - Debt cancellation contract defined.
Section 54-4-74 - Debt suspension contract defined.
Section 54-4-75 - Debt cancellation contracts and debt suspension contracts permitted.
Section 54-4-76 - Loans by unlicensed lenders uncollectible except for principal.
Section 54-4-77 - Debt collection--Prohibitions.
Section 54-4-77.1 - Exemptions not applicable to prohibited debt-collection tactics.
Section 54-4-79 - Contracts for collection and maintenance of records and processing of fees.
Section 54-4-80 - Sharing of information collected by director.
Section 54-4-81 - Attorney's fees recoverable if provided for in evidence of debt.