Prescribed Debt in South Africa: Know Your Rights

Prescription is the legal principle that a debt becomes unenforceable after a certain period of inactivity. In South Africa the Prescription Act 68 of 1969 sets these time limits. Once a debt has prescribed, a creditor can no longer sue you to recover it.

The three-year rule

Most ordinary debts — such as credit card balances, personal loans, retail accounts, and money owed for services — prescribe after three years. This period runs from the date the debt became due and payable, provided the creditor did nothing to enforce it and you did not acknowledge it.

Debts with longer periods

• Debts secured by a mortgage bond, judgment debts, and debts owed to the State for taxes prescribe after 30 years.
• Certain debts, such as those arising from a notarial bond, prescribe after six years.

What interrupts prescription

The three-year clock can be reset or paused. Prescription is interrupted if you acknowledge the debt — for example by making a payment, signing an acknowledgement of debt, or even admitting in writing that you owe the money. It is also interrupted if the creditor serves a summons on you. After an interruption, the clock generally starts running again from the beginning.

Protection under the National Credit Act

Amendments to the National Credit Act 34 of 2005 make it unlawful for debt collectors to demand or collect payment of a debt they know has prescribed, and they may not sell prescribed debt or continue collection once the consumer raises prescription. This protects consumers from being pressured into “reviving” old debts.

How to raise prescription

Prescription is not automatic in court — you must raise it as a defence. If you are sued or contacted about an old debt, and more than three years have passed without any payment, acknowledgement or summons, you can raise prescription. Because interruptions can be easy to overlook, it is wise to check the exact dates before relying on this defence.

Never make a payment or sign anything to “settle” an old debt before checking whether it has prescribed — doing so can restart the clock and make an unenforceable debt enforceable again.