Old Debt? It Might Be 'Prescribed' (Expired). Don't Pay Until You Read This.

The Scenario: The Zombie Debt

You haven't heard from a bank in 6 years. You forgot about that credit card you maxed out in 2018. Suddenly, your phone rings. It's a debt collector. "You owe R15,000. If you don't pay immediately, we will blacklist you and seize your assets."

They sound scary. You panic. You offer to pay R50 just to make them go away.

STOP.

By offering that R50, you might have just revived a "dead" debt that you legally did not have to pay. This guide explains Prescription of Debt and how to use it to protect yourself.

What is Prescription?

In South Africa, debt does not last forever. The Prescription Act states that, generally, a debt is "extinguished" (expires) after a certain period if the creditor has been inactive.

Once a debt is prescribed:

1. You are not legally liable to pay it.
2. Creditors cannot sue you for it.
3. Magistrates cannot grant judgments against you for it.

The 3-Year Rule

Most common debts prescribe after 3 years.

Debts that expire after 3 Years:

• Credit cards
• Personal loans
• Vehicle finance (if the car has been repossessed already)
• Retail store accounts (clothing accounts)
• Gym contracts
• Cellphone contracts

Exceptions (Debts that take 30 Years to expire):

• Mortgage bonds (home loans)
• Judgments (where a court has already ordered you to pay)
• Taxes (SARS debt)
• Municipal debt (rates and taxes)

How to Know if YOUR Debt is Prescribed

For a standard loan or credit card to be prescribed, ALL three of these conditions must be met:

1. Time: It has been more than 3 years since the payment was due.
2. Silence: You have NOT admitted owing the debt (verbally or in writing) in the last 3 years.
3. No Court Action: The creditor has NOT served you with a legal summons in the last 3 years.

Scenario: You stopped paying your Edgars card in Jan 2020. The shop never sent you a summons. You never answered their calls. Today is Jan 2026. Result: The debt is likely prescribed. You owe nothing.

The Trap: "Interrupting Prescription"

This is why debt collectors call you.

Prescription is "interrupted" (reset to zero) if you acknowledge the debt. If the collector calls and you say: "Yes, I know I owe money, I can only pay R50 next month," you just reset the clock. The 3-year countdown starts all over again from today.

This is why they pressure you to pay "just a small amount." That small payment is an admission of liability.

What to Do When They Call

If you suspect the debt is old (over 3 years):

1. Do NOT admit liability. Do not say "I will pay." Do not say "I'm sorry."
2. Ask for details. Ask: "When was the last payment made on this account? When was the summons served?"
3. Raise the Defence. If it's over 3 years, state clearly: "I believe this debt has prescribed in terms of the Prescription Act. I have not acknowledged this debt in such period, nor have I been served a summons. Please provide proof to the contrary or remove my details."
4. Report them. It is illegal for debt collectors to collect on prescribed debt (under the National Credit Act amendment). If they persist, report them to the Council for Debt Collectors.

Does It Clear My Credit Score?

Yes. Prescribed debt can no longer be listed on your credit profile at the credit bureaus (TransUnion, Experian, etc.). If it is still there, you can lodge a dispute with the bureau citing prescription, and they must remove it.

When You DO Need Help

Sometimes it's complicated. Maybe they claim they sent a summons to an old address. Maybe it's a judgment from 10 years ago you didn't know about.

If a collector is harassing you or threatening legal action for old debt:

1. Don't sign anything.
2. Don't pay anything yet.
3. Get a professional to check the status.

→ Speak to a Debt Expert / Attorney