Prescribed Debt Guide & Services
Prescribed Debt Clearance in South Africa
Under the Prescription Act 68 of 1969, most unsecured debts in South Africa expire after 3 years. You may be paying debts that are no longer legally enforceable. Debt365 helps you stop.
What is Prescribed Debt?
The Prescription Act 68 of 1969 is a piece of South African legislation that governs how long a creditor has to enforce a debt. For most unsecured debts, that period is 3 years from the date the debt became due.
If, during that 3-year period, all of the following are true, the debt has prescribed and is no longer legally enforceable:
- No payment of any amount has been made on the account
- The debt has not been acknowledged in writing (e.g. an SMS, email or signed letter)
- No summons has been issued out of a court against you for the debt
- No judgment has been granted by a court in respect of the debt
If a debt has prescribed, you are no longer legally obligated to pay it. Furthermore, under section 126B of the National Credit Act, a debt collector who tries to collect on a prescribed debt is committing an offence and can be reported to the National Credit Regulator.
Which Debts Can Prescribe?
Debts that prescribe in 3 years
- Credit card debt
- Personal & micro loans
- Retail / store accounts (Edgars, Truworths, Mr Price, Woolworths, Foschini, etc.)
- Cell phone & airtime contracts
- Medical aid & hospital accounts
- Gym membership arrears
- Overdrafts & bank charges
- Vehicle finance shortfalls (after voluntary surrender)
Debts that take longer (or don't prescribe)
- Mortgage / home loan bonds — 30 years
- SARS tax debt — does not prescribe in the usual sense
- Court judgments — 30 years
- Debts acknowledged in writing — clock resets
- NSFAS student loans
- Maintenance orders
- Municipal rates and utilities (collected via the Local Authority Act)
Warning: Don't Accidentally Reset Prescription
If a debt collector contacts you about an old debt, do not make any payment, payment arrangement, or acknowledge the debt in writing. Even a small "good faith" payment of R10, an SMS reply that says "I'll pay next month", or signing a payment plan can reset the 3-year prescription clock and make you legally liable for the full amount again.
Debt collectors know this. It's why they call repeatedly trying to get any acknowledgement. Many South Africans unknowingly revive prescribed debts every year — debts they never had to pay.
Contact Debt365 first. We assess whether the debt has prescribed and handle all communication with the debt collector on your behalf — in writing, on official letterhead, citing the Prescription Act and the NCA.
How Debt365 Clears Prescribed Debt
Comprehensive Debt Audit
We pull your full credit profile from TransUnion, Experian, XDS and VCCB and identify every account older than 3 years that may have prescribed.
Legal Prescription Analysis
Our legal team verifies last payment date, written acknowledgements, and any court action that could have interrupted the prescription period.
Cease-and-Desist & Bureau Notification
We issue formal cease-and-desist letters to debt collectors and notify the credit bureaus to remove prescribed listings from your record.
Written Confirmation
You receive official confirmation that the debts have been cleared and your credit record updated. We keep a paper trail in case the debt is later sold to another collector.
Your Legal Rights Around Prescribed Debt
South African consumers are protected by both the Prescription Act 68 of 1969 and the National Credit Act 34 of 2005. You have the right to:
- Refuse to pay any debt that has legally prescribed
- Demand written proof of the original debt and last payment date
- Report a debt collector to the National Credit Regulator if they try to enforce a prescribed debt
- Have prescribed listings removed from your credit profile under section 71A of the NCA
- Seek free legal advice through an NCR-registered debt counsellor
Frequently Asked Questions
Can a debt collector still call me for prescribed debt?
Technically yes, but once you notify them that the debt has prescribed, they must cease collection activities. Under the NCA, it is illegal to continue collecting on a prescribed debt if they are aware of its status.
Does the 3-year rule apply to bank loans?
Yes, personal loans and credit cards from major banks like ABSA, FNB, or Standard Bank typically prescribe after 3 years, provided no judgment was granted.
Will clearing prescribed debt improve my credit score?
Absolutely. Removing negative adverse listings associated with prescribed debt cleans up your credit profile and allows your score to reflect your current financial standing.
Related Credit Rebuilding Services
Think Your Debt Has Prescribed?
Get a free assessment. We'll check if your old debts are legally enforceable — and stop you paying for ones that aren't.