What is a Prescribed Debt in South Africa?
Old debt that hasn’t been acknowledged for three years or more is known as prescribed debt.
What happens to the customer?
Everyone is required to repay their obligation. Not paying it off is wrong. But it is also improper for a creditor or debt collector to request payment several years after you have missed payments on the account.
What happens if your debt is not prescribed?
If you haven’t acknowledged your unpaid obligation within three years or if you haven’t made a payment, your debt still exists and you are still responsible for paying it off.
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Can you get out of debt?
A debt collector cannot demand payment from you if your debt has been prescribed and has lain dormant for three or more years. It is also illegal for them to do so. The sale and collection of Prescribed Debt are prohibited under the National Credit Amendment Act, which was announced on March 13, 2015.
How long does a prescribe debt last
Prescription periods are specified by various laws in South Africa. For instance, the Prescription Act states that both contractual and delictual debts expire three years after the date of the debt.
