When Does Debt Expire in South Africa?

When debt expires, it’s called prescription debt. Debt can expire if neither you nor your creditor acknowledge the debt for a certain period. If you and your creditor don’t contact one another regarding credit card debt for three years (its prescription period), for instance, you can have the debt written off.

Understanding prescription periods for debt is crucial for indebted people, as if neither you nor your creditor acknowledge a debt verbally or in writing for a period, you don’t have to pay it. Rather, you can apply for it to be written off after it’s prescribed, freeing you from any obligation to your creditor.

This post serves to clarify the rules regarding debt and its expiry – prescription periods – in South Africa, the Prescription Act 68 of 1969, and how you can take advantage of debt expiry.

Prescription Debt

First, let’s define prescription debt. Debts prescribe when you and your creditor both don’t acknowledge your debt in any way for a certain period. The prescription period (the date from which your debt can prescribe) starts the day your debt is due.

If you didn’t make debt payments, promise payment, or admit the debt exists during the prescription period, it can prescribe. Similarly, if a creditor doesn’t ask for payment or take legal action (and you don’t contact them or make payments), a debt can prescribe.

Your debt can’t be prescribed if you stop your creditor from knowing about the debt, you contact your creditor, or your creditor contacts you, whether you meant to or not. If someone acknowledges the debt, the prescription period resets. The prescription period can also be reset if the due date is moved.

There are other exceptions, too:

• You’re out of the country
• You and your creditor are married
• The debt arose from a dispute formally resolved (using an arbitrator)
• Your creditor died
• The court has declared you impeded (for instance, a minor or insane)

The Act also doesn’t apply to any debts governed by Bantu (tribal) law.

Prescription Debt Periods

According to the Prescription Act 68 of 1969, debts have the following prescription periods:

Debts that have an older 30-year prescription period include:

• Mortgages/home loans
• Judgment debts
• Tax debt or debts incurred under a law
• Debt owed to the government from profit shares, royalties or otherwise regarding the right to mine minerals or other substances

Debt from a loan, advance government, and sold or rented land expires after 15 years. Otherwise, all other debts, including credit card debt, personal loans, store accounts, cell phone contracts, gym contracts, electricity accounts, and school fees expire/prescribe after three years.

Has Your Debt Prescribed?

If you think your debt has prescribed, Debtco Group can help you dispute and remove prescription debt from your credit record. We’ll assess your case and contact the relevant creditor, ensuring they provide relevant evidence to the credit bureaus so your adverse account is removed and the debt is written off.

Debtco Group’s team are experts in prescription debt, reckless credit, and reducing debts. To find out more, contact us today. We would love to help you on your journey to becoming debt-free.