Prescription

01

Could some of your old debt have prescribed?

Prescription is an important legal concept in South Africa that can affect a creditor’s ability to enforce certain debts. However, the fact that a debt is old, unpaid or no longer appearing on your credit report does not automatically mean that the debt has prescribed.

Under the Prescription Act 68 of 1969, the ordinary prescription period for many debts is three years, although different periods can apply depending on the nature of the debt and the legislation governing it.

Prescription can also be interrupted in certain circumstances.

02

What does it mean when a debt prescribes?

In simple terms, prescription can prevent a creditor from legally enforcing a debt once the applicable prescription period has run, provided that the requirements for prescription have been met.

The National Credit Regulator explains that a prescribed debt is a debt where the credit provider has not taken the required action to recover it within the applicable period.

However, prescription is not automatic simply because a debt is old.

03

What can interrupt prescription?

There are circumstances that can interrupt the running of prescription.

For example, an express or tacit acknowledgement of liability by a debtor can interrupt prescription, after which the prescription period may begin running afresh.

Legal proceedings served on a debtor to claim payment can also interrupt prescription, subject to the requirements of the Prescription Act.

This is why it is important to establish what has happened with a debt before assuming that it has prescribed.

04

Prescription and debt review

Prescription can become particularly important when dealing with historical debt, debt review and applications relating to the removal of debt-review information.

A consumer may have debts that are many years old, but the age of the debt alone does not establish that it has prescribed. The history of the account, payments or acknowledgements made, legal action taken, judgments obtained and other relevant circumstances may all need to be considered..

In some cases, prescription may form part of the broader assessment of a consumer's debt position..

05

Prescription is not offered as a standalone service

National Debt Helpline does not offer prescription as a standalone product or service.

Prescription is considered only where it is relevant to a consumer's debt review, debt-review removal, or another related debt matter..

If you believe that prescription may be relevant to your circumstances, our team can assess the available information and determine whether it should form part of the broader matter being considered..

Because your life is bigger than your debt..