Old debts have a way of resurfacing. A call about a debt from years ago can feel like a threat, but the law limits how long a creditor can enforce most debts.
Here is how prescribed debt works, and how not to revive it by accident.
What does prescribed debt mean?
When a debt prescribes, the creditor can no longer force you to pay through the courts. The debt does not vanish morally, or necessarily from every record, but the legal right to enforce it ends.
How long is the prescription period?
For most ordinary consumer debts, including many credit agreements, the period is three years under the Prescription Act. Some debts have longer periods. For example, a court judgment can be enforced for 30 years.
| Type of debt | Usual period |
|---|---|
| Most consumer debts | 3 years |
| A court judgment | 30 years |
When does the clock start?
Generally from the date the debt became due, for example the date you first missed a payment on a loan. It runs until three years have passed without an interruption.
What interrupts or restarts the clock?
| Event | Effect |
|---|---|
| The creditor serves a summons | Interrupts prescription |
| You acknowledge the debt in writing or on the phone | Can restart the period |
| You make a payment | Can be treated as an acknowledgement |
A small “good faith” payment to a collector can restart the clock on an old debt. Before you pay, check whether the debt has prescribed.
How do you check whether a debt has prescribed?
- Ask the collector for the date of the last payment and the date of default.
- Ask for proof of the debt, such as the original agreement and statements.
- Count three years from when the debt became due, allowing for interruptions.
- Get advice from Legal Aid South Africa, a law clinic or an attorney if it is unclear.
What should you say to a collector?
Be careful. Do not admit that you owe the debt. A short written reply works well: ask for proof, state that you dispute the debt, and say you reserve your rights, including that it may have prescribed.
“I do not acknowledge this debt. Please send the original agreement, the account statements and the date of the last payment. I reserve all my rights, including that the debt may have prescribed.”
See debt collectors for what collectors may and may not do.
What happens if the debt has prescribed?
If the creditor goes to court, you must raise prescription as a defence. If you do not, the court may not apply it for you.
A prescribed debt can still appear on your credit record until its retention period ends. See free credit reports.
Should you pay a prescribed debt anyway?
That is your choice. Some people choose to pay for peace of mind, or because they want credit. Be aware that paying can revive the debt in some circumstances. Get advice first.
What if the debt has not prescribed?
Then make an arrangement. See what to do when you cannot pay your debts and debt review.
What does a prescribed debt timeline look like?
Here is a hypothetical example, to show how the dates work. Check your own facts with an adviser.
| Event | Date |
|---|---|
| You miss the first payment on a loan | 1 March 2021 |
| You make no payments and no summons is served | 2021 to 2024 |
| Three years pass | 1 March 2024 |
| Debt may have prescribed | |
| If you pay R50 on 5 February 2024 | The clock may restart from that date |
| New date, if the clock restarted | about 5 February 2027 |
A single small payment, made just before the debt prescribed, can give the creditor three more years. That is why collectors often ask for a “small amount to show good faith”. Do not agree to any payment until you know the dates.
What counts as acknowledging a debt?
An acknowledgement can restart the clock, so be careful with words. These are usually treated as acknowledgements:
- Signing a payment plan or an acknowledgement of debt form.
- Saying “I will pay” or “I owe this” in writing, and sometimes on a call.
- Making a part-payment.
These are usually not:
- Asking for proof of the debt.
- Saying you dispute it.
- Asking for a statement.
Courts look at the facts, and there are grey areas, so get advice if you are unsure. When you reply to a collector, write only what you mean to say, and keep a copy.
What should you gather to check prescription?
The better your paperwork, the faster the answer. Collect:
| Item | Why it helps |
|---|---|
| Letters and statements | Show the date of default and the amount |
| The last payment date | The most recent date is key |
| Any summons or court papers | They can interrupt prescription |
| Messages with collectors | May show an acknowledgement |
| Your credit report | Shows the listing and dates |
Put the dates on one page, in order. An adviser can then tell you in minutes whether the debt is likely to have prescribed.
What if you are summoned over a debt you think has prescribed?
Do not ignore it. A court will not raise prescription for you, so you must raise it. Take these steps:
- Note the date by which you must respond, and act before it.
- Get legal help from Legal Aid South Africa, a law clinic or an attorney.
- File the response that states you rely on prescription.
- Keep proof of every step.
If you do nothing, a default judgment may be granted against you, and a judgment can be enforced for 30 years. See judgment debt for what follows.
What are the common myths about prescribed debt?
A few beliefs about prescribed debt cost people money:
- “The debt disappears after three years.” It stops being enforceable in court, but only if the clock was not interrupted.
- “A collector must stop calling.” A collector may still ask, so ask for proof and avoid admitting the debt.
- “Paying a little shows good faith.” A part-payment can restart the clock.
- “The listing disappears too.” Credit record entries follow their own retention periods.
Check the dates before you act, and put your answers to a collector in writing.
Frequently asked questions
Does a prescribed debt disappear from my credit report?
Not automatically. Listings stay for their retention periods under the National Credit Regulations.
Can a collector still call me about a prescribed debt?
A collector may ask, but it cannot enforce the debt in court. Ask for proof and do not admit the debt.
Does a judgment prescribe?
Not for 30 years, unless it is paid or set aside.
Where can I get free advice?
Legal Aid South Africa, a law clinic or the Credit Ombud for credit disputes.
Can I ask a collector to confirm the debt has not prescribed?
You can ask for the dates and proof. Do not admit the debt in the same message.
Does moving house or changing my number stop prescription?
No. The clock runs whether or not the creditor can find you, unless it is interrupted by a summons or an acknowledgement.
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