Prescribed Debt: When a Debt Becomes Too Old to Claim

If an old debt resurfaces years later — a store account you'd forgotten, a call from a collector about something from a previous job — it's worth knowing that South African law puts a time limit on most ordinary debts. The term for this is prescription.

The three-year rule

Section 11(d) of the Prescription Act 68 of 1969 sets a prescription period of three years for ordinary debts, which includes most consumer credit debt. Once a debt has prescribed, it is extinguished, and a collector cannot successfully sustain a claim on it.

Not every debt falls under the three-year period — some categories, such as mortgage bonds and judgment debts, have longer periods. This is one of the reasons it's worth getting a proper view of a specific debt rather than assuming.

What the National Credit Act adds

Section 126B of the National Credit Act specifically regulates practices around prescribed consumer debts — including prohibiting the sale of prescribed consumer debt, and the continued collection or re-activation of it. In other words, this isn't only a technical defence you have to raise: there are rules about what may be done with these debts in the first place.

The trap: acknowledging the debt can restart the clock

This is the part that catches people out. If you acknowledge the debt — for example by promising to pay, agreeing to a payment arrangement, or making a payment towards it — prescription can be interrupted and the period can begin running again. A collector asking you to “just pay something small to show good faith” on a very old debt may be doing exactly that.

So if you're contacted about a debt you believe is very old, the safer move is to ask for the details in writing and get advice before agreeing to anything or making a payment.

What this doesn't mean

Prescription is not a strategy for dealing with current debt. It applies to debts that have already run their course untouched — it is not a way to avoid debts you are actively repaying or that are still within their period. If you're struggling with current repayments, that's a different problem with different solutions, such as debt review.

What to do if you think a debt has prescribed

Ask the collector for the full details of the debt in writing, including when the last payment or acknowledgement was made. Check your credit report — you're entitled to one free copy a year — to see what is actually listed against your name. Then get advice specific to that debt before responding, because the consequences of a casual acknowledgement are real.