South Dakota Demand Letter

Introduction

Key Things to Know

1. 1

   South Dakota's sharpest rule for this letter is its dishonored-check law: a notice of dishonor served by registered or certified mail, return receipt requested, or by first class mail with an affidavit of mailing, is conclusively presumed given on the date of mailing if not returned undeliverable (SDCL 22-30A-32), the 30-day payment clock runs from that mailing date, not receipt, and if the check writer does not pay within those 30 days you can recover a civil penalty equal to double the check amount, plus the check itself and up to $60 in collection costs if you posted the required fee notice in advance (SDCL 22-30A-33; 57A-3-421).

2. 2

   SDCL 22-30A-34 prescribes its own required notice-of-dishonor content, including the issuer's name, the bank, the check's date and amount, and the 30-day payment period; this general demand letter is not a substitute for that statutory notice if you intend to pursue the civil penalty.

3. 3

   South Dakota's Deceptive Trade Practices and Consumer Protection Act does not require a private plaintiff to send any pre-suit notice before suing for damages under SDCL 37-24-31, and recovery is limited to actual damages, with no statutory multiplier for a private plaintiff.

4. 4

   South Dakota has no attorney's-fee presentment statute for an ordinary contract or account claim. Attorney compensation is left to the parties' agreement (SDCL 15-17-38), and SDCL 15-17-39 voids a contractual attorney's-fee clause in a note, bond, mortgage, or other evidence of debt as against public policy unless a specific statute authorizes it.

5. 5

   South Dakota gives a written contract and an oral contract the same six-year limitations period (SDCL 15-2-13(1)), and the same six years to sue for injury to personal property or trespass to real property (SDCL 15-2-13(3), (4)).

6. 6

   If the parties' contract creates an obligation to pay interest but specifies no rate, South Dakota lets interest run at up to 12 percent a year from the date the debt was incurred (SDCL 54-3-4); once a debt is due on a written instrument, a loan, or a settled account, interest runs at 15 percent a year unless an express written contract fixes a different rate or a rate clearly appears on the invoice, in which case an invoice-stated rate is capped at 18 percent (SDCL 54-3-5).

7. 7

   South Dakota's Small Claims Court, part of the magistrate court system, hears claims up to $12,000, not including allowable costs or attorney fees (SDCL 15-39-45.1; 16-12C-13), and unlike some states, South Dakota lets either party be represented by an attorney at trial. Never threaten arrest, jail, or criminal prosecution to collect a civil debt in this letter.

South Dakota Requirements for Demand Letter

• Bad-Check Notice Runs From the Mailing Date

  A South Dakota notice of dishonor may be served by registered or certified mail, return receipt requested, or by first class mail with an affidavit of mailing, and if not returned undeliverable it is conclusively presumed given on the date of mailing (SDCL 22-30A-32). The 30-day payment period in SDCL 22-30A-33 runs from that mailing date, not from when the check writer actually receives it.

• Bad-Check Civil Penalty Doubles the Check

  If the check writer does not pay within 30 days of the notice of dishonor being mailed, SDCL 22-30A-33 adds a civil penalty equal to double the amount of the check, on top of the check itself, with no stated floor or cap on the doubled penalty.

• Statutory Notice-of-Dishonor Form Required

  SDCL 22-30A-34 prescribes the notice of dishonor's own required content, including the issuer's name, the bank, the check's date and amount, the holder's name, and the 30-day payment period. A general demand letter should not imitate this statutory form; use a notice meeting SDCL 22-30A-34 separately if pursuing the civil penalty.

• Collection Costs Capped at $60

  SDCL 57A-3-421 lets a merchant who conspicuously posts or prints a fee notice in advance collect the reasonable costs and expenses of collecting a dishonored check, presumed reasonable if they do not exceed $60 plus sales tax.

• No Consumer Pre-Suit Notice Requirement

  South Dakota's Deceptive Trade Practices and Consumer Protection Act lets a person adversely affected by an unlawful practice under SDCL 37-24-6 sue for actual damages under SDCL 37-24-31 with no pre-suit written-notice step required in the statute's text.

• Attorney's Fee Clauses in a Note Are Voided

  SDCL 15-17-38 leaves attorney compensation to the parties' agreement, with no general presentment or fee-shifting statute for an ordinary contract or account claim. SDCL 15-17-39 voids a contractual attorney's-fee clause in a note, bond, mortgage, or other evidence of debt as against public policy unless a specific statute authorizes it.

• Six-Year Limitations Period

  SDCL 15-2-13(1) gives a written contract and an oral contract the same six-year limitations period, and SDCL 15-2-13(3) and (4) give the same six years for trespass to real property and injury to personal property.

• Fixed Statutory Interest Rates

  SDCL 54-3-4 caps interest at 12 percent a year where a contract creates an interest obligation but states no rate. SDCL 54-3-5 runs interest at 15 percent a year on money after it becomes due, unless a written contract fixes a different rate or a rate appears on the invoice, in which case an invoice-stated rate is capped at 18 percent.

• Small Claims Limit and Attorneys Permitted

  South Dakota's Small Claims Court hears claims up to $12,000, not including allowable costs or attorney fees (SDCL 15-39-45.1; 16-12C-13), and either party may be represented by an attorney at trial, unlike states that bar attorneys from small claims.