On July 10, 2025, South Carolina debtors and creditors alike are preparing for the implementation of new legislation that will make it easier for creditors to collect on past due debts. The South Carolina Debt Collection Act, which was signed into law earlier this year, aims to streamline the debt collection process and provide creditors with more tools to pursue delinquent borrowers.Under the new legislation, creditors will have the ability to garnish wages, place liens on property, and even freeze bank accounts without a court order. Additionally, debt collectors will be allowed to pursue debts that have been outstanding for up to 10 years, a significant extension from the previous limit of seven years.The South Carolina Debt Collection Act also includes provisions aimed at protecting debtors from aggressive or abusive collection practices. For example, creditors will be required to provide debtors with written notice before taking any legal action, and they will be prohibited from contacting debtors outside of certain designated hours.Despite these protections, consumer advocacy groups have raised concerns about the potential for abuse under the new legislation. They argue that the expanded powers granted to creditors could disproportionately affect vulnerable populations, such as low-income individuals and seniors on fixed incomes.In response to these concerns, the South Carolina Department of Consumer Affairs has introduced new guidelines for debt collectors to ensure compliance with the law and protect debtors' rights. These guidelines include requirements for clear and accurate communication, as well as restrictions on the use of harassment or intimidation tactics.As the July 10 deadline approaches, both debtors and creditors are bracing for the impact of the new legislation. While creditors see the law as a necessary tool to recoup lost funds, debtors are concerned about the potential consequences of increased collection efforts. It remains to be seen how the South Carolina Debt Collection Act will ultimately reshape the landscape of debt collection in the state.