Is that old debt still collectable?
Collectors buy old debt books and phone hoping you do not know the rules. Some old debt is genuinely still owed; a lot has prescribed and may not lawfully be collected. Answer four questions and see where yours likely stands, and exactly what to say. Only a court decides finally.
The rules in plain words
- Ordinary debts prescribe three years after falling due; mortgage bonds, judgments and tax run thirty years
- The clock restarts when you acknowledge the debt or pay anything, or when a summons is served: calls and demand letters do not restart it
- For credit agreement debt, NCA section 126B bans selling or continuing to collect prescribed debt: raising prescription in writing should end the collection
- On a call about old debt: do not admit it, do not promise anything, do not make a goodwill payment; ask for the full history in writing
- Never ignore a summons. Prescription is a defence you must raise; default judgment turns a dead debt into a thirty year one
What this page is and is not
This is information about the Prescription Act and a letter to raise the defence: nothing here is legal advice, debt counselling or advice on debt arrangements. If you are over indebted rather than chasing an old ghost, a registered debt counsellor is the right professional, and where a summons or attorney is involved, get legal help immediately. Only a court finally decides prescription.
Collector will not stop?
We draft your written prescription response citing the Act and NCA section 126B from your facts. R350, one business day.
Order the letterPer the Prescription Act 68 of 1969 and NCA section 126B. Interruptions, insolvency and some debt types complicate the picture; the result here is indicative only and only a court decides finally. Not legal advice or debt counselling.