We would like to bring the following relevant legislation to your attention:
Prescription Act No. 68 of 1969
Are you aware that your debt can prescribe under certain circumstances?
In terms of the Prescription Act No. 68 of 1969, certain categories of debt prescribe after various periods of time have elapsed and certain conditions are met, for example, your home loan account may prescribe after a period of 30 years while your retail clothing account may prescribe after a period of 3 years.
Prescription is a defence in law that can be raised by you, but it can be interrupted. The interruption of prescription can take many forms but should you feel that you have been contacted by us regarding any debt you think may have prescribed, please contact us, or alternatively, click on the link below to complete a prescription assessment form.
National Credit Amendment Act No. 19 of 2014
In addition, the National Credit Amendment Act No. 19 of 2014 under Section 126B states:
1 (a) “No person may sell a debt under a credit agreement to which this Act applies and that has been extinguished by prescription under the Prescription Act, 1969 (Act No. 68 of 1969)
1 (b) “No person may continue the collection of, or re-activate a debt under a credit agreement to which this Act applies –
(i) which debt has been extinguished by prescription under the Prescription Act, 1969 (Act No. 68 of 1969); and
(ii) where the consumer raises the defence of prescription, or would reasonably have raised the defence of prescription had the consumer been aware of such defence, in response to a demand, whether as part of legal proceedings or otherwise”.