Prescribed Debt in South Africa

A situation that is fairly unknown to the general credit user, many of whom are caught out because of it, prescribed debt is an integral part of debt collection that you should definitely know about. Prescribed debt is, in laymen’s terms, old debt that has not been acknowledged by either contracted side or paid within three years. Often passed on to and chased down by debt collectors, many credit users do not know that this debt must be acknowledged by the debtor before it has to be paid. Without acknowledgement this debt counts for nothing.

If a debtor has made a payment on a prescribed debt, or acknowledged its existence, they will have forfeited the prescription defense without realizing and will became liable for the debt once again, including years of interest and fees incurred. This is often how debt collectors trick debtors into paying the debt.

To protect the consumer from insane and unreasonable interest, as well as accumulated fees, that the creditor left to build up, this ensures that creditors that want to collect must do so in a timely and decent manner.