Banking
Consumer Complaint Frequently Asked Questions
Who should I file my complaint with?
How can I file a complaint with the Division of Banking?
Why do I have to put my complaint in writing?
Does the Division of Banking investigate complaints against all banks located in South Dakota?
How will I know what type of charter my bank has?
How much interest can a South Dakota lender charge on a loan?
Who should I file my complaint with?
To help determine who regulates the company your complaint involves, check our Complaint Reference List.
How can I file a complaint with the Division of Banking?
You must submit the complaint in writing using the South Dakota Division of Banking Consumer Complaint Form. Please note:
- The Division of Banking cannot act as a court of law or as a lawyer on your behalf.
- The Division of Banking cannot give legal advice.
- The Division of cannot become involved in complaints that are in litigation or that have been litigated.
Be sure to be as specific as possible regarding the nature of your complaint and the resolution you desire. The more specific you are, the more specific the response will typically be. Also, if you have any documentation that supports your complaint, such as bank statements, credit agreements, copies of checks, etc., please attach copies to your complaint and keep the originals for yourself.
Why does my complaint have to be in writing?
Financial institutions keep most of their customer information confidential, just as we do. A written complaint form gives us your written authorization to inquire with the financial institution regarding your individual business with them. Additionally, it is often necessary to examine written documentation pertinent to a complaint, such as credit agreements, copies of checks, billing statements, etc. These are best obtained as attachments to a written submission. It also ensures we are not sharing information with anyone other than you.
Does the Division of Banking investigate complaints against all banks located in South Dakota?
No. The Division of Banking has jurisdiction over South Dakota state-chartered banks. Banks that are chartered by other states are subject to the jurisdiction of the state by which they are chartered. Additionally, some banks in South Dakota are federally chartered as either national banks or federal savings banks. National banks and federal savings banks are regulated by the Office of the Comptroller of the Currency. Unless a problem is strictly a matter of state law, issues involving federally chartered institutions are referred to the appropriate federal regulatory authority. The Office of the Comptroller of the Currency may be reached by calling 800.613.6743.
How will I know what type of charter my bank has?
Generally national banks, which are regulated by the Comptroller of the Currency, either contain the word "national" in their names, or their name is followed by the initials "N.A." Federal Savings Banks, also regulated by the Comptroller of the Currency, either contain the words "federal" and "savings" in their names or their name is followed by the initials "F.S.B." If you are uncertain, call our office at 605.773.3421. Our representative will discuss your problem, determine which regulator can help you, and advise you of the best way to proceed.
I want to file a complaint regarding my credit union. Does the Division of Banking handle these complaints?
No. All complaints regarding credit unions should be made to National Credit Union Administration (NCUA).
What do I do if my complaint is with a financial business that is not a bank, such as a mortgage company?
The South Dakota Division of Banking licenses and regulates several different types of financial businesses including money lenders, mortgage brokers, mortgage lenders and money transmitters. Each type of licensee has statutes and regulations with which the licensees must comply. If you have a problem with a company in South Dakota that might fall into one of these categories, call our office at 605.773.3421. We will be glad to discuss the problem and determine if we can be of assistance.
How much interest can a South Dakota lender charge on a loan?
SDCL 54-4-44 provides that lenders licensed pursuant to SDCL Chapter 54-4 may not contract for or receive finance charges pursuant to a loan in excess of an annual rate of thirty-six percent, including all charges for any ancillary product or service and any other charge or fee incident to the extension of credit. Please note, however, that South Dakota banks are generally not required to be licensed pursuant to SDCL Chapter 54-4. The rate of interest on loans made by South Dakota banks is established by the agreement that governs the loan. The amount of interest and related account terms are a contractual matter between the borrower and the lender. Please take the time to shop for the best credit opportunity available to you.
If you cannot find the information you are looking for among the topics listed in the left-hand menu or through one of the options above, please contact us.