Prescribed Debt: Everything You Need to Know

Almost 42% of credit-active consumers are struggling to pay their debts according to the latest 2020 industry figures. If you are one of them, then you probably know all too well what it’s like to be overrun with emails, calls, letters and SMS’s reminding you to pay your debt. 

But what if you are still being hounded by a creditor, demanding payment on an account you can hardly even remember? Or you noticed an account you have not paid for years still on your credit report. Maybe you know you can’t pay your debt, so you’re hoping for a way out…eventually. 

Well, that really “old debt” could be prescribed debt. And it is unlawful for a creditor to demand payment of prescribed debt…

So what exactly is prescribed debt, how does it work and what are your rights as a consumer? Read on and find out everything you need to know about prescribed debt.

What does it mean when debt is prescribed?

Prescribed debt is the term used to describe all consumer debts that are past the prescribed time period where the borrower is still liable for their debt by law.

Debt such as a credit card or personal loan can only be prescribed after 3 years. A mortgage bond and judgement debt (where legal action was taken) can only be prescribed after 30 years. 

If your credit provider has not made efforts to secure payment, taken legal action, or failed to communicate with you in the prescribed time, the money owed becomes prescribed debt. In other words, it’s expired and can be legally written off.

You will not be notified whether or not you have prescribed debt. 

Whether your debt is prescribed depends on what type of debt it is, how long has passed and what legal actions were taken in an attempt to recover the debt during the prescribed time period. 

What type of debt is written off in 3 years?

The majority of consumer debt lies in contractual credit agreements:

  • Store accountsOverdrafts
  • Credit card accounts
  • Personal Loans
  • Payday Loans
  • Gym memberships
  • Cell phone contacts
  • Home broadband & landline contacts
  • Vehicle Finance

If you owe money to any of these types of contractual credit agreements for more than three years with no paper trail or proof, then the credit provider loses the right to take action against you regarding this debt ever again. 

How to check if my debt has been prescribed

If you suspect you have prescribed debt then you should check your credit report. If your credit report shows that you have prescribed debt, you should contact the credit provider concerned. You will have to request that they remove the information pertaining to the prescribed debt from your credit report.
If you would like to request a credit report, click here.

Prescribed debt and debt collection laws in South Africa

How do creditors lawfully stop debt from getting prescribed?

The Prescription Act has laws in place to ensure this process is fair to both the consumer and the creditor. Therefore, it is not advisable to let debt lie dormant for a long period. In fact, it causes more harm than good. Keep reading and you’ll find out why.

The credit provider has the right to interrupt and extend the prescribed time period. They generally make every effort possible to ensure debt does not become prescribed.

Creditor providers have the right to take legal action against you for any amount of money owed if you have defaulted. This legal action results in blacklisting, damaging your chances of getting credit in the future and for as long as the debt remains payable.  

Even if you have not physically received any notification of legal action taken, it can still be served. This usually happens when you have changed your address and you failed to update your details with the credit provider. 

And remember, if you don’t pay the money owed even after legal action has been taken, you will still be liable for it for another 30 years depending on whether the process has been interrupted again. That’s a long time to wait before you can clear your name…

Your debt has NOT been prescribed if you have made any acknowledgement of the debt, or made any payment towards the debt within the set time period. Finally, leaving the country and living outside of South Africa’s borders for any period of time will pause the prescribed time period, meaning you will still be liable for that debt when you return.

Occasionally creditors will sell their debt to debt collectors who will try to collect the outstanding money from consumers. When this happens the debt collectors take on ALL the outstanding debt including interest, the debt amount, recovery cost, legal fees etc. 

Debt collectors will demand that you pay any money owed in full along with the additional costs. This amount will therefore be significantly higher than your original debt. Ouch…

Consumer rights against debt collectors

Debt collectors will try to find any loopholes where they can to persuade you to pay up and interrupt the prescription period. This is called “interrupting prescription”.

If you’re being harassed, or if someone is demanding that you pay a debt that you believe is prescribed, you can raise the prescription as a defence. You should also refuse to make any payment until they provide evidence that the debt is not prescribed. You’ll have to document your communication, so use emails or letters when communicating. Request them to stop harassing you or to provide proof that the debt is not prescribed. 

They will need to provide:

  • The original loan agreement 
  • Proof of the default 
  • The outstanding balance 
  • Total interest and costs incurred
  • Evidence that they have tried to contact you within the three-year prescribed period. 

How Long Does it Take for debt to be written off in South Africa?


If you are struggling to meet your monthly repayments and are currently being harassed by creditors, it’s better to take action than to shy away from your obligations. Credit providers have strict processes in place to stop debt from being prescribed. The National Credit Act has put various debt relief measures in place for over-indebted consumers. Debt Review is one of those solutions.

Over the years debt review, also known as debt counselling, has been highly effective at helping struggling consumers from ending up in more financial trouble. If you would like to know more about the process, get in touch with one of our expert consultants today.

48 responses to “Prescribed Debt: Everything You Need to Know”

  1. Hi Johan

    Yes, you can. To qualify for debt review you’ll need to be employed and have at least R40,000. As long as you’re earning an income you’ll qualify.
    Please provide us with your contact information. One of our friendly consultants will get back to you as soon as possible. They will answer any question you may have.

  2. Debt review and debt prescription are two different debt solutions. Please leave your details below and one of our friendly consultants will contact you and answer any questions you may have.

  3. Iam under dept review and two of my account are predcribed while in dept review a must to settle them or i can qualify for settlement letter without paying thd outstanding amount under prescribed dept?

  4. Hello.

    I went under debt review 2 years after my accounts were in arrears there are no judgements or defaults on my credit record. It has now been the 3rd year that I have defaulted with my debt counselor due to non payment and the Statutory of consent shows on my profile. The account has already prescribed. Can I follow the prescription process and exit debt review after this has been done? I haven’t made any promise to pay or acknowledgment

  5. Hi…I applied for debt review in February 2014 nd cacelled april 2014, there was no payment made by then..Some of my debt were prescribed nd some have been paid off but there is still 1 clothes account that i just recovered was not paid nd it has been handed to lawyers. The account was for 2012 2013 so am not sure if this account should be prescribed. If i want to check the acc is prescribed where do i go.the debt review still appears on my credit profile

  6. Hi Mapitsi

    Contact your debt counsellor to assist you with this matter.

  7. Hi. Please advise my situation.
    My account at FNB is in overdraft – minus R20 000.
    My credit card is maxed out – minus R60 000.
    Personal Loan – debt minus R60 000.
    Revolving Loan – debt minus R50 000.
    Covid Relief Loan – debt minus R40 000.
    I have minimal income right now and since lockdown started 2 years ago I could not work.
    I am a coach that trains kids and work for myself.
    My debt is so much I would never ever be able to repay it.
    I can’t work now either and 90% of kids stopped training due to covid and lock downs.
    I make R3000 – R5000 per month. (from this I need to live buy food)
    I literally can’t afford to pay any of these loans as I barely have money for food to survive.
    I have no car. I have no house. I have no property or anything of value.
    I have nothing but the clothes I am wearing.
    This is an impossible situation.
    And I am scared to death and stressed out about the weird numbers calling me.
    What do I do?

  8. Hi Lara

    We’re very sorry to hear about your situation, it can’t be easy. Please use our online calculator to see how much you can save per month by applying for debt review – follow this link to the online calculator This process has helped thousands of people in the same position as you. Alternatively, leave your contact details in the field below and one of our friendly consultants will contact you shortly.

    Please let us know if you have any other questions.

  9. How do I check if an account has been prescribed. I have an account that’s showing on my credit bureau profile apparently I took a payday loan in July 2018 that has never been debited and I have never changed my banking details. What do I do with this debt?

  10. how do i remove a red flag. i cancelled my debt review years ago but its still red flagged. plz help.

  11. Good day,

    Kindly advise.

    I have two loan accounts that go back 6 and 8 years. They are both loan account. Does this
    count as prescribed debt.

  12. Hi Jillian

    Please contact us and one of our consultants will help you with your query more accurately

  13. What happens if you have prescribed debt if you under debt review and have not paid for 5 years

  14. Hi Gito

    Please contact us asap. One of our consultants will address your query and help you find the best solution.

  15. i have a few loans out mostly taken out in 2018 and i have made erratic payments over they years but they are all behind in payments. do they still qualify to be prescribed as its now 2022 and ideally i would like them to be written off.

  16. I have a large amount in unpaid levy arrears accumulated since 2008. The amount now is R44892,77 including interest to Feb 2022 owing the Body Corporate (BC). In 2014 when the arrear was R14695 a Judgement order was granted against me but the BC has not furthered any processes. Accordingly the Attorney’s fees on reaching judgement was R4761 in 2014 rising to R13054 now @ 15.5% interest. The BC is now claiming R57947 in full settlement of my levy account as I contemplate selling the unit. Do I qualify for prescription on any part of this debt?

  17. So what happens if you have a mortgage bond and you have other debts like a personal loan but cant afford to pay the personal loan, but I can pay my mortgage bond only. Can they take my house or do something to add the debts to my mortgage loan?

  18. I have a prescribed student loan and my other account telkom account states that I’m deceased will I qualify for any loan??

  19. Good day Rudi, best would be to get in contact with one of our consultants to assist you with answering your questions. Please feel free to leave your contact number and we will contact you as soon as possible.

  20. Good day Kesi, thank you for reaching out to us. Please note that service agreements does not prescribe and if a judgment was issued this will reflect against your name for 30 years or until you settle the account. Best would be to reach an agreement with the provider and stick to your agreement to get this removed from your name.

  21. Good day Tumelo, this might mean that the debt has been written off, best would be to contact the provider that listed you and request that they remove the listing from your name. Alternatively you can do a ITC clearance.

  22. Good day Russell, please note that this debt will not be prescribed if you made any payment to this account in the last 3 years. Best would be to rather make arrangements with the credit providers to get this debt settled to avoid Judgements against your name. Alternatively you can make contact with our offices on 0861 123 644 and one of our friendly consultants will help you with advise and possible solutions.

  23. Good evening

    I went under debt review in 2016 however my debt counselor closed down in 2017 🤦‍♂️. I only had one account that has been prescribed and transunion has removed it off my profile, however it still shows that I’m under debt review, I’ve contacted the NCR but got no response. Is there any way that you can assist me with this matter.

    I have the letter from TransUnion saying its prescribed and removed from my profile.

    Please contact me if you can assist, I live in the Edenvale area.

  24. Good day

    I dropped out of tertiary in 2016 because I couldn’t afford to pay the fees, Las week I received a summons statement I must pay outstanding fees. What should I do?

    Thank you

  25. Good day Siya, the best advise we can give would be to contact the attorneys that handles the matter and reach an agreement to repay the debt you have.

  26. Hi there, Thanks for the article. I have received a Municipal Bill that states that I owe them R9k for rates that they did not charge me from Feb 2017 to January 2018. Today is 9 June 2022. The Municipality says their system failed and did not charge me the rates but now the system has suddenly remembered hence the large amount owing. IS this Municipal Rates debt now prescribed and can I approach the municipality saying that the debt is prescribed and that they cant demand it?

  27. Good day, thank you for your feedback. Unfortunately municipal debt cant not be prescribed therefor you will have to contact them and reach an agreement to pay the money owed to them. Alternatively you can appoint an attorney to negotiate on your behalf.

  28. Hi I have a nimble on my credit report trying to collect debt from 2018 i need this removed please assist

  29. Good Day

    I need legal advise, i last made payment on 20 December 2020 for Edgars clothing store, how can i file prescription as now they have sent letter of demand s19

  30. Allen, If your debt is prescribed and you ask for the prescribtion letters and the company does not reply, what must you do? AND is there a timeframe for them to send you the prescribtion letters? Can debt review be removed without this prescribtion letters if the companies don’t reply or send you the prescribtion letters?
    I mean certainly there must be timeframes involved?

  31. I have 4 account in arrears:
    1. Vodacom
    2. Vodacom
    3. VW Vehicle
    4. Investec Vehicles

    I am currently paying for the first three (the Vodacoms and VW Vehecles. They were handed over to attorenys)

    The Investec Vehicles I have not paid. The last communication with the creditor was in March 2022

    If i dont communicate with creditor in the next two years will i qualify for prescription in March 2025?

    Please advise

  32. Good day Siyethamba, unfortunately this is not how it works as long as the credit provider can proof that they have been trying to remain in contact with you (regardless whether you change your contact information), you will remain liable for the debt. As it is your responsibility to FICA if you change contact numbers, email address and residential address.

  33. Debt Review is acknowledgment that you know you have the debt, should a credit provider not supply a prescription letter, you will remain liable for the debt.

  34. I logged into my clearscore account and out of the blue it says I have 2 new accounts. 2 Credit cards with account numbers by a debt collection company called DMC5.

    I get disability grant and never applied for any cedit. Nor can I afdord it.

    I went to their website to report fraud and had to log in with my ID number in order to get support, and then saw accounts, with amounts to be paid in my “so called accout” under my ID number.

    The staff member who I talked to via a website based chat program, kept telling me they have to investigate this to either prescribe the debt or have it prescribed. He never answered my question why they created 2 credit cards. I kept telling him I dont owe anyone and fraud was committed. But he was oblivious to this.

    What can I do about this?
    They illegally opened 2 credit cards in my name.
    They have my personal info and are claiming money I dont owe.
    Who should I contact? What must I do?
    Please help me?

  35. Best would be to go to the police station and make an affidavit stating that fraud was committed on your ID number and supply DMCS and the bank that the credit cards was opened with, with the affidavit. This is a very long investigation process but safe guard yourself in the meantime and get the affidavit.

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