If you have old debts that have gone unpaid for years, they may have "prescribed" — meaning creditors can no longer legally enforce them. Understanding how prescription works in South Africa could save you thousands of rands and protect you from paying debts you no longer owe. But one wrong move can restart the clock entirely.
What Is Prescription of Debt?
Prescription of debt is a legal concept governed by the Prescription Act 68 of 1969. In simple terms, it means that a debt becomes unenforceable after a certain period of time has passed — provided the creditor has failed to take legal action to claim the debt, and the debtor has not acknowledged the debt or made any payment during that period.
Prescription does not mean the debt disappears or is forgiven. It means the creditor loses their legal right to enforce payment through the courts. The debt still technically exists, but it becomes a natural obligation — one that cannot be enforced by law.
This protection exists because the law recognises that it would be unjust to allow creditors to pursue debts indefinitely. After a reasonable period, debtors should be able to move on with their lives without the threat of old, unclaimed debts hanging over them.
Prescription Periods in South Africa
Different types of debt have different prescription periods. The Prescription Act sets out the following timeframes:
| Period | Type of Debt |
|---|---|
| 3 years | Most consumer debts — credit cards, personal loans, store accounts, gym contracts, cellphone contracts, electricity arrears, school fees, medical bills |
| 6 years | Bills of exchange (such as promissory notes) and notarial contracts |
| 15 years | SARS tax debts |
| 30 years | Mortgage bonds, court judgments, and debts owed to the State (excluding tax debts) |
The 3-year prescription period is the most relevant for most South Africans, as it covers the vast majority of everyday consumer debts. If no payment has been made and no legal action taken for 3 years, these debts become unenforceable.
When Does Prescription Start Running?
According to Section 12 of the Prescription Act, the prescription period begins to run from the date the debt becomes due — that is, the date from which the creditor has the right to claim payment.
In practical terms, this is usually:
- For instalment debts: The date of the last missed instalment payment. Each instalment prescribes separately, so only instalments that are more than 3 years overdue may have prescribed.
- For debts payable on demand: The date the creditor first demanded payment.
- For debts with a fixed due date: The date specified in the agreement when payment was due.
- After acceleration: If the creditor has cancelled the agreement and demanded the full outstanding balance (known as acceleration), prescription runs from the date of that demand on the entire balance.
How Is Prescription Interrupted?
Section 14 of the Prescription Act sets out the circumstances under which the prescription period is interrupted — meaning the clock stops and restarts from zero. Prescription is interrupted by:
- Acknowledgment of debt: If the debtor acknowledges the debt in any way — whether verbally, in writing, or by conduct — the prescription period restarts completely. This includes saying "I know I owe that money" on a phone call, signing an acknowledgment of debt form, or agreeing to a payment arrangement.
- Any payment: Making even a single payment of any amount — even R10 — restarts the entire prescription period. This is why debt collectors often ask you to make a "small goodwill payment" — it resets the clock.
- Service of legal process: If the creditor serves a summons or other legal process on you, prescription is interrupted. The summons must be properly served — simply sending a letter of demand does not count.
Critical warning: Making even one payment of any amount, or verbally acknowledging the debt (such as saying "yes, I know I owe that money" during a phone call), restarts the entire 3-year prescription clock. Do not engage with debt collectors about old debts until you have confirmed whether the debt has prescribed. Say nothing. Pay nothing. Seek advice first.
Can Debt Collectors Pursue Prescribed Debt?
No. Since the 2015 amendment to the National Credit Act, Section 126B expressly prohibits debt collectors and creditors from selling, collecting, or re-activating a debt that has prescribed. This was a landmark change that closed a loophole that debt collectors had exploited for years — buying old prescribed debts for cents on the rand and then attempting to collect the full amount.
However, there is an important caveat: the consumer must raise the defence of prescription themselves. Prescription is not applied automatically. If a debt collector contacts you about a debt you believe has prescribed, you must formally inform them — preferably in writing — that the debt has prescribed and that you are invoking your rights under Section 126B of the NCA.
If a debt collector continues to pursue a prescribed debt after you have raised the defence, they are acting unlawfully. You can report them to the National Credit Regulator (NCR) or the Council for Debt Collectors.
How to Check If Your Debt Has Prescribed
Follow these steps to determine whether an old debt has prescribed:
Determine whether the debt is a consumer debt (3-year period), a notarial contract (6 years), a tax debt (15 years), or a mortgage/judgment (30 years). Most everyday debts fall under the 3-year category.
Check your bank statements, credit bureau records, or correspondence from the creditor to establish when you last made a payment on this debt. This is the date from which the prescription clock started running.
Review whether you have acknowledged the debt at any point — by signing anything, making a promise to pay, or confirming the debt verbally. Any acknowledgment restarts the prescription period from the date of that acknowledgment.
Determine whether the creditor served a summons or other legal process on you. If they did, prescription was interrupted at that point. A letter of demand alone does not count — it must be formal legal process (summons, warrant, etc.).
From the date of the last payment, acknowledgment, or legal process (whichever is most recent), count forward by the applicable prescription period. If more than 3 years have passed (for consumer debts) with no interruption, the debt has likely prescribed.
If you are unsure, consult a debt counsellor or attorney before taking any action. Do not contact the creditor or debt collector directly, as any communication could inadvertently restart the prescription period.
5 Common Myths About Prescribed Debt — Debunked
"Prescribed debt disappears from your credit report"
Prescription and credit bureau records are two separate things. A debt can prescribe (become unenforceable) while still appearing on your credit report. Credit bureau listings are governed by their own retention periods — typically 1 to 5 years depending on the type of listing. You may need to dispute the listing separately with the credit bureau.
"Debt collector phone calls interrupt prescription"
Phone calls, letters, emails, and SMS messages from debt collectors do NOT interrupt prescription. Only three things can interrupt prescription: an acknowledgment of debt by the debtor, a payment by the debtor, or service of legal process. A debt collector contacting you has no effect whatsoever on the prescription period.
"You need a lawyer to claim prescribed debt"
You do not need a lawyer. You can raise the defence of prescription yourself by writing to the creditor or debt collector and stating that the debt has prescribed under the Prescription Act 68 of 1969. However, if you are unsure about the facts, consulting a debt counsellor or attorney is recommended to avoid accidentally restarting the clock.
"Prescribed debt can be sold to another collector and become enforceable again"
No. Since the 2015 NCA amendment (Section 126B), it is illegal to sell, collect, or re-activate prescribed debt. If a debt has prescribed, it remains prescribed regardless of how many times it is sold between collectors. A new collector cannot revive a prescribed debt.
"If you were unaware of the debt, it cannot prescribe"
Prescription runs regardless of whether you were aware of the debt or not. The prescription period is based on when the debt became due, not when the debtor learned about it. If the creditor failed to claim within the prescribed period, the debt becomes unenforceable — even if you never received any correspondence about it.
What Prescribed Debt Means for Debt Review
If you are considering debt review, it is important to understand how prescribed debt fits into the picture. Debts that have prescribed should not be included in your debt review repayment plan, because they are no longer legally enforceable.
Including prescribed debts in your debt review would mean you are paying money towards debts that creditors cannot legally force you to repay. A competent debt counsellor will review all your debts during the assessment phase and identify any that may have prescribed.
However, if you have a mix of prescribed and active debts, debt review can still be beneficial for managing the active debts that remain enforceable. The key is to separate them — deal with prescribed debts by raising the prescription defence, and restructure the remaining active debts through debt review.
If you are already under debt review and discover that some of your included debts have prescribed, speak to your debt counsellor about having them removed from your repayment plan. This could reduce your monthly repayment amount.
Important: If a debt collector contacts you about an old debt, do NOT make any payment or acknowledge the debt until you have checked whether it has prescribed. Even saying "yes, I know I owe that money" can restart the prescription period. Seek advice from a debt counsellor first.
Related Articles
- What Is Debt Review and How Does It Work in South Africa?
- Section 129 Notice — What It Means and What to Do
- Debt Review and Your Credit Score
Frequently Asked Questions
Can a debt collector still contact me about prescribed debt?
Since the 2015 amendment to the National Credit Act (Section 126B), it is illegal for a debt collector to pursue, collect, or re-activate a debt that has prescribed. However, you must raise the defence of prescription yourself — it is not applied automatically. If a debt collector contacts you about a prescribed debt, do not acknowledge the debt or make any payment. Instead, inform them in writing that the debt has prescribed.
Does a phone call from a debt collector interrupt prescription?
No. A phone call from a debt collector does not interrupt prescription. Prescription can only be interrupted by an acknowledgment of debt by the debtor (verbal or written), a payment made by the debtor, or the service of legal process (such as a summons). Simply receiving calls or letters from a debt collector has no effect on the prescription period.
Does prescribed debt disappear from my credit report?
Not automatically. The prescription of a debt does not remove it from your credit report. However, credit bureaus are required to remove adverse information after a certain period — typically 1 year for default listings, 2 years for judgments once paid, and 5 years for administration orders. If a prescribed debt still appears on your credit report, you can dispute it directly with the credit bureau.
Can I accidentally restart the prescription period?
Yes — and this is one of the biggest risks. Making even a single payment of any amount, verbally acknowledging that you owe the debt (for example, saying 'I know I owe that money'), or signing any document that references the debt can restart the entire prescription period from scratch. This is why it is critical to say nothing and pay nothing until you have confirmed whether the debt has prescribed.
What is the difference between prescribed debt and written-off debt?
A written-off debt is an accounting decision by the creditor to remove the debt from their books — but you still legally owe the money and the creditor can still pursue you. Prescribed debt, on the other hand, is a legal defence — the debt becomes unenforceable because the creditor failed to claim within the legally allowed time period. A written-off debt can still be collected; a prescribed debt cannot.
