Prescription of Debt in South Africa: The 3-Year Rule
Under the Prescription Act 68 of 1969, most consumer credit debts in South Africa prescribe (expire) after three years if neither payment nor acknowledgement of the debt has been made. Once a debt has prescribed, it is legally unenforceable and a creditor or collector cannot obtain a court judgment against you for it. Understanding prescription can protect you from paying debts you are no longer legally obliged to pay.
Which Debts Prescribe After 3 Years?
The standard prescription period for most debts in South Africa is three years under Section 11(d) of the Prescription Act. This covers the majority of consumer credit obligations including personal loans, credit cards, store accounts, and vehicle finance arrears.
| Debt Type | Prescription Period |
|---|---|
| Personal loans, credit cards, store accounts | 3 years |
| Court judgments | 30 years |
| Home loans (mortgage bonds) | 3 years for arrears (30 years for the bond itself) |
| TV licence fees | 3 years |
| Municipal rates and services | 30 years (government debt) |
When Does the 3 Years Start Running?
Prescription begins to run from the date the debt becomes due and payable – typically the date of the first missed payment. The three years run continuously unless interrupted.
Importantly, prescription only starts running if the creditor knows who the debtor is and where to find them. If you deliberately conceal yourself, prescription may not run.
Never pay even R1 on an old debt you believe may be prescribed without first getting advice. Paying restarts the full 3-year period. A verbal acknowledgement on a recorded call may also interrupt prescription.
What Interrupts (Restarts) Prescription?
- Making any payment on the debt, even a very small amount
- Sending any written acknowledgement of the debt
- Signing a new repayment arrangement
- The creditor serving a summons on you (legal process)
- Lodging a claim in the creditor's insolvency
Keep a copy of every letter in which you raise prescription. If the matter goes to court, this documentation is essential.
How to Raise Prescription as a Defence
Prescription is not automatic – you must raise it as a defence. If a collector contacts you about an old debt, you can respond in writing stating: 'I believe this debt has prescribed under the Prescription Act 68 of 1969 and I am raising prescription as a complete defence. Please provide proof that the debt has not prescribed before any further contact.'
If a summons is issued, you must raise prescription in your plea to the magistrate's court. Failure to raise it means the court may grant a default judgment against you.
What Collectors Cannot Do on Prescribed Debt
Collecting on prescribed debt using deceptive or misleading tactics is prohibited conduct under the National Credit Act and the Debt Collectors Act. You can report such conduct to the NCR on 0860 627 627 or the Council for Debt Collectors on 012 804 9808.
- Sue you in court for the prescribed debt
- List the debt as currently collectable on your credit record
- Threaten legal action they know they cannot take
- Misrepresent that you are legally obliged to pay