Commercial Law
Debt Collection and Prescription
Most debts in South Africa prescribe (become unenforceable) after 3 years without acknowledgment, payment or summons. The National Credit Act regulates credit agreements and debt enforcement, while the Debt Collectors Act controls collector conduct and fees. Consumers under debt stress can apply for debt review.
Key facts
- Ordinary debts prescribe after 3 years; mortgage bonds, judgment debts and tax debts after 30 years.
- Acknowledging a debt or making a payment restarts the prescription clock.
- Collectors cannot add unregulated fees or harass debtors — the Council for Debt Collectors handles complaints.
- A s 129 NCA notice is a prerequisite before a credit provider can sue on a credit agreement.
The law that applies
- Prescription Act 68 of 1969 — ss 10–14
- National Credit Act 34 of 2005 — ss 86, 103(5), 129–130
- Debt Collectors Act 114 of 1998 — ss 15, 19
Leading cases
Kubyana v Standard Bank 2014 (3) SA 56 (CC)
Sets what a credit provider must prove about delivery of the s 129 notice before enforcement.
Practical steps
- Ask the collector for a full statement and proof of the debt's age.
- If prescribed, dispute in writing citing the Prescription Act and s 126B NCA.
- If the debt is valid, negotiate a payment plan or consider debt review.
Frequently asked questions
A collector is chasing me for a 5-year-old clothing account. Must I pay?
Probably not — if 3 years passed without payment, acknowledgment or summons, the debt has prescribed and s 126B of the NCA prohibits collecting or reactivating it. Do not acknowledge the debt; dispute it in writing and raise prescription.
How does this apply to your situation?
Ask LexiSA. It will gather your facts, apply the law above, and give you a cited assessment of your position — free.
Ask about commercial lawThis guide is legal information, not legal advice, and may not reflect amendments after its last review. For advice on your specific circumstances, consult a practising attorney.