What Is Prescribed Debt – And What Can You Do About It?

Imagine getting a phone call about a debt you forgot about years ago—and now someone wants you to pay it back, with interest. Sounds scary, right? But what if that debt was too old for them to collect?

That’s what we call prescribed debt. It’s a legal term that protects you from being forced to pay certain old debts. But it only works if you know your rights.

Let’s explain it in a simple way, and help you understand what to do if this happens to you.

Prescribed debt is when a debt becomes too old to collect. In South Africa, most debts prescribe (or “expire”) after 3 years.

That means:

• If you haven’t made a payment on the debt in the last 3 years,

• And you haven’t acknowledged (admitted to owing) the debt in writing or verbally,

• And the creditor hasn’t taken legal action in those 3 years…

👉 Then that debt is prescribed. And legally, you don’t have to pay it.

Common examples of debts that can prescribe:

• Credit cards

• Store accounts (like Edgars, Jet, etc.)

• Personal loans

• Cellphone contracts

⏳ Some debts (like a bond or money owed to SARS) have longer time frames and don’t prescribe in 3 years.

The National Credit Act (NCA) and the Prescription Act protect consumers from being bullied into paying prescribed debt.

In fact, since 2015, it’s illegal for debt collectors to:

• Ask you to pay prescribed debt if it meets the conditions above,

• Or try to collect on it without telling you it’s prescribed.

Here are 3 signs that a debt might be prescribed:

1. It’s been more than 3 years since you made a payment or heard about the debt.

2. The creditor never contacted you during that time.

3. You never signed anything or said you still owe it during those 3 years.

⚠️ Be careful! If you admit to the debt, even on the phone, the 3-year countdown starts again!

1. Stay calm. Don’t agree to pay right away.

2. Ask the debt collector for proof:

   • When was the last payment made?

   • Has legal action been taken?

3. Say clearly:
   “I believe this debt is prescribed. Please provide proof to the contrary.”

4. Do not make a small payment or admit you owe the money.

5. Get advice from a registered debt counsellor—like DCGsa.

Yes—but with care.

If you enter debt review, your debt counsellor will:

• Check which debts are still valid,

• Help you exclude prescribed debts from your repayment plan,

• Protect you legally from harassment and unfair treatment.

If you think a debt on your record is prescribed, ask your counsellor about it during your free debt assessment.

• Keep records of all debts, payments, and letters from creditors.

• Never ignore legal letters or summons.

• Check your credit report every 6 months using a free credit check.

• If you’re unsure about anything, talk to a debt counsellor before you pay.

Prescribed debt can’t be used to trick or scare you. But if you don’t know your rights, you might end up paying for something you legally don’t owe.

If you’re unsure about your debt status or want a professional to check if your debt has prescribed, contact the team at DCGsa. We’ll guide you through the process safely and with your rights in mind.