Prescribed debt in South Africa is debt that has become too old to enforce. Under the Prescription Act 68 of 1969, most ordinary consumer debts are extinguished three years after they became due, provided you have not paid anything towards the debt, acknowledged it, or been served with a summons in that time. For debts arising from a credit agreement covered by the National Credit Act, section 126B goes further and makes it unlawful to sell, continue collecting, or reactivate a prescribed debt.
How long each type of debt takes to prescribe
| Type of debt | Prescription period |
|---|---|
| Most consumer and contractual debts, including credit cards, personal loans, store accounts, retail accounts and overdrafts | 3 years |
| Bills of exchange, other negotiable instruments and notarial contracts | 6 years |
| Certain debts owed to the State for mining royalties and similar consideration | 15 years |
| Debts secured by a mortgage bond, judgment debts, taxes and money loaned to the State | 30 years |
The three-year period is the default. It applies to any debt for which no other period is set by law.
Some claims fall outside this framework entirely. Claims against the Road Accident Fund, for example, are governed by their own legislation with its own time limits.
Old municipal and toll accounts sit in a grey area that depends on the underlying legal basis for the charge, which is one reason questions keep coming up about historic accounts such as the e-toll balances left over after billing stopped.
When the three years start counting
Prescription starts running when the debt becomes due, not when you took out the credit and not when the collector first contacted you.
For a revolving account that fell into arrears, that is generally the date the full balance became payable. Ask the creditor in writing for the date of your last payment and a copy of the original agreement. Those two documents settle most arguments about whether a debt has prescribed.
Four things that restart or stop the clock
- Making any payment. Even R50 towards an old account counts as an acknowledgement and starts a fresh three years.
- Acknowledging the debt. This can be express or tacit, in writing, by email, or verbally on a recorded call.
- Signing an acknowledgement of debt or a payment arrangement. This is the outcome collectors are usually working towards.
- Being served with a summons. Service of process interrupts prescription.
Prescription can also be delayed in specific circumstances set out in the Act, including where the debtor is outside the country.
This is why debt collectors phone repeatedly about accounts that appear to be dead. A short conversation in which you concede the debt is yours can hand the collector another three years.
What section 126B changed
Before 2015, collectors could buy portfolios of very old debt cheaply and pressure people who had no idea prescription existed. Section 126B was inserted into the National Credit Act by the National Credit Amendment Act of 2014 and came into operation on 13 March 2015.
It provides that no person may sell a debt under an NCA credit agreement that has been extinguished by prescription, and that no person may continue collecting or reactivate such a debt where the consumer raises the defence of prescription, or would reasonably have raised it had the consumer been aware of the defence.
That last phrase matters. For NCA credit agreements, the collector cannot rely on you being ignorant of your rights. Selling the debt on to another collector does not revive it either.
Debts outside the National Credit Act, such as unpaid invoices or certain non-credit obligations, get the Prescription Act protection only. A court may not raise prescription on its own initiative, so if you are sued you must raise it yourself as a defence.
How to raise the defence
- Do not pay anything and do not admit the debt while you check.
- Ask the collector in writing for the original signed agreement, a full statement, and the date of the last payment or acknowledgement.
- If more than three years have passed since the debt became due, notify them in writing that the debt has prescribed and that you are relying on the Prescription Act and section 126B.
- Keep copies of everything.
- If they continue, complain to the National Credit Regulator, or to the National Financial Ombud Scheme, which handles the credit complaints previously taken by the Credit Ombud.
If a summons has already been issued, get legal advice rather than ignoring it. Southafriworld is not a law firm and this is general information, not advice on your specific account.
What prescription does not do
Prescription removes the creditor’s legal right to enforce the debt. It does not automatically clean your credit record.
Credit bureau listings are governed separately, under National Credit Act regulations that set maximum retention periods for different categories of adverse information. If a prescribed debt still shows as outstanding on your report, dispute it in writing with the bureau and attach your correspondence. Confirm the applicable retention period with the bureau or the National Credit Regulator, as these periods differ by listing type.
Common problems
A collector says prescription was broken by a payment you do not remember. Ask for proof of the payment date and the payment method. The onus should not sit with you to disprove it.
The debt was sold to a new company. Selling a prescribed NCA debt is itself prohibited. The clock does not reset on sale.
You are pressured by phone and message. Collectors often escalate through repeated calls and messages. Respond in writing only, and treat urgent payment demands with the same suspicion as scam messages circulating on WhatsApp.
You are asked to pay a settlement into an account given over the phone. Verify banking details through the company’s official channels, since this is a standard route in banking fraud targeting South Africans.
A judgment was taken against you years ago. Judgment debts prescribe after 30 years, not three.
Frequently asked questions
How long before a debt prescribes in South Africa?
Three years for most consumer debts, running from the date the debt became due.
Does prescribed debt disappear?
The obligation is extinguished, but you generally have to raise prescription for it to have effect, and the listing on your credit record is dealt with separately.
Can a debt collector still phone me?
For NCA credit agreements, continuing to collect a prescribed debt is prohibited. Tell them in writing that the debt has prescribed.
Will paying a small amount help my credit score?
It restarts the three-year period. Check whether the debt has prescribed before you pay anything.
Does a home loan prescribe after three years?
No. Debt secured by a mortgage bond prescribes after 30 years.
Who do I complain to?
The National Credit Regulator, or the National Financial Ombud Scheme for credit complaints.
What to watch
The South African Law Reform Commission has proposed a draft Prescription Bill that would rework parts of the 1969 Act. Nothing in that proposal is law, and the three-year period and section 126B remain in force unchanged. Watch for the Bill being introduced in Parliament, and for National Credit Regulator enforcement action against collectors pursuing prescribed debt, which is the practical test of whether section 126B is working.
