Prescribed debt in South Africa
Under the Prescription Act most consumer debts prescribe after three years without acknowledgement or legal action, and the National Credit Act prohibits collecting on a debt that has prescribed. The trap is that acknowledging the debt — even by making a small payment — can restart the clock.
What this actually means for your application
Prescription runs from the date of the last acknowledgement or payment, not from when the account was opened. Three years of genuine silence on both sides generally extinguishes the claim.
Debt collectors buy old books cheaply and contact people about accounts that may well have prescribed. The single most costly thing you can do is agree to a small "goodwill" payment to make the calls stop, because that acknowledgement can revive a debt that was already unenforceable.
If you are contacted about an old debt, ask in writing for the date of the last payment or acknowledgement, and do not pay or admit anything until you have it. If the debt has prescribed, say so in writing and report continued collection to the National Credit Regulator.
Check these three things before you sign — here or anywhere
- The lender’s NCRCP number is published on its own site, and it checks out in the National Credit Regulator’s register.
- The pre-agreement quote breaks out the total cost of credit: interest, initiation fee, service fee and VAT — as one figure you can compare.
- Nobody asks you for an upfront “release fee”. A registered credit provider never charges you before it pays out.
Related
Sources and last checked
- National Credit Regulator — register of credit providers — Regulator, as at 10 August 2026.
- National Credit Act 34 of 2005 and its regulations — Government, as at 10 August 2026.
Page last checked 10 August 2026. Statutory caps and lender terms change — confirm anything you intend to rely on with the provider or the National Credit Regulator. Found something wrong? Tell us and we will correct it.