You’ve worked hard to improve your credit rating, aiming for that dream home or car, only to face disappointment when an old, prescribed debt reappears on your credit report. Often, creditors sell old accounts to debt collectors who claim you must pay, even after the debt has prescribed.
What is Debt Prescription?
In South Africa, debt typically prescribes three years of no contact or payment from the debtor. If a creditor cannot prove they contacted you during this time, the debt is considered prescribed, and you are no longer obligated to pay it. However, many debt collectors use aggressive tactics to revive these debts unlawfully.
Know Your Rights
Under the National Credit Act and the Prescription Act, you have the right to dispute any debt that has prescribed. You should always request proof of payment or communication from the creditor to ensure they have not violated prescription laws. Remember, selling a debt to a collection agency does not reset the prescription period.
How to Protect Yourself
- Check Your Credit Report Annually: Keep a printed copy for seven years to track prescribed debts.
- Dispute Incorrect Listings: If you see a debt you believe has prescribed, challenge it with the credit bureau.
- Seek Professional Help: If you’re unsure how to handle a prescribed debt, consult a registered debt counselor like Consumer Debt Support.
Conclusion
Debt prescription laws exist to protect you, but understanding and enforcing them is crucial. Stay informed, protect your financial future, and don’t be misled by unlawful debt collection practices.
For assistance with debt review removal or more information, visit us to discuss your current debt profile https://www.debtcenter.co.za/contact-us/ or call us on 0211005451. Want to talk to our Credit Report Assessment Centre connect with us on 0871494662 for immediate feedback on your debt status.
| Thank you for the information. Very interesting. This is great, thank you so much! |
