Is that old debt still collectable?
Collectors buy old debt books and phone hoping you do not know the rules. Some old debt is genuinely still owed; a lot has prescribed and may not lawfully be collected. Answer four questions and see where yours likely stands, and exactly what to say. Only a court decides finally.
The rules in plain words
- Ordinary debts prescribe three years after falling due; mortgage bonds, judgments and tax run thirty years
- The clock restarts when you acknowledge the debt or pay anything, or when a summons is served: calls and demand letters do not restart it
- For credit agreement debt, NCA section 126B bans selling or continuing to collect prescribed debt: raising prescription in writing should end the collection
- On a call about old debt: do not admit it, do not promise anything, do not make a goodwill payment; ask for the full history in writing
- Never ignore a summons. Prescription is a defence you must raise; default judgment turns a dead debt into a thirty year one
What this page is and is not
This is information about the Prescription Act and a letter to raise the defence: nothing here is legal advice, debt counselling or advice on debt arrangements. If you are over indebted rather than chasing an old ghost, a registered debt counsellor is the right professional, and where a summons or attorney is involved, get legal help immediately. Only a court finally decides prescription.
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We draft your written prescription response citing the Act and NCA section 126B from your facts. R350, one business day.
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More questions people ask
When does debt prescribe in South Africa?
Most ordinary debts prescribe three years after they became due, if nothing interrupted the clock. Mortgage bonds, judgment debts and tax debts run thirty years. Prescribed debt still exists but becomes unenforceable, and credit agreement debt that has prescribed may not lawfully be sold or collected.
What restarts the prescription clock?
Any acknowledgment of the debt, including a part payment or agreeing you owe it, and the service of a summons. Collector phone calls and letters of demand do not interrupt prescription, which is why collectors push so hard for a small goodwill payment.
Can a collector demand payment on prescribed debt?
For credit agreement debt, section 126B of the National Credit Act prohibits selling or continuing to collect prescribed debt once prescription is or could reasonably be raised. Raise it in writing; do not pay, promise or acknowledge anything first.
Can I ignore a summons on prescribed debt?
Never. A court does not apply prescription by itself; you must defend the matter and raise prescription as a defence. Ignoring the summons converts the old debt into a thirty year judgment debt. Get legal help with the notice of intention to defend immediately.
Per the Prescription Act 68 of 1969 and NCA section 126B. Interruptions, insolvency and some debt types complicate the picture; the result here is indicative only and only a court decides finally. Not legal advice or debt counselling.