The Prescription Act states that the running of a prescription is halted if any of the following events occur within three years of the payment being due: The debtor admits to owing the debt, either verbally or in writing; The debtor pays off his or her debt; or A summons is issued and served on the debtor by the creditor.
How do I find out if my debt was prescribed?
You should check your credit report to see if prescribed debt is reflected there. If your credit report shows prescribed debt, you should contact the credit bureaus.
What causes a debt to be prescribed?
Prescribed debt is defined as old debt that has not been acknowledged for three years. A debt, in more specific terms, is prescribed if you have not acknowledged the debt in writing or verbally in the previous three years.
What is the prescription period in South Africa?
The prescription periods are as follows: 30 years for debts secured by mortgage bond, judgment debts, etc.; 15 years for certain debts owed to the State; and 6 years for debts arising from a bill of exchange and notarial contract.
In South Africa, how long before a debt becomes uncollectible?
In other words, the debt has been paid off. Debt that has not been recognized by the creditor or paid on for more than 36 months is considered prescribed in most cases. When it comes to prescription time, different loan types have different time specifications.
