The Prescription Act: A Powerful Legal Tool We Wield
The Prescription Act can extinguish your debt. Our legal experts use it to protect you from unlawful collection and clean your credit report.
The Prescription Act is a South African law that every consumer should know about, but few truly understand. It dictates when a debt becomes legally unenforceable due to the passage of time.
At Dispute It, we are experts in the application of this Act. We use it proactively to protect our clients from paying debts they no longer legally owe and to clear illegal listings from their credit reports.
What is Prescription? A Legal Definition
Prescription extinguishes a debt. Once a debt "prescribes," the creditor loses the legal right to collect it through the courts. The National Credit Act goes further, making it illegal to even attempt to collect on prescribed debt.
The Critical Time Limits
- Three (3) Years: This is the most important period for consumers. It applies to most common credit agreements like personal loans, credit cards, vehicle finance, and retail accounts.
- Thirty (30) Years: This applies only to very specific, secured debts like a home loan or a debt already confirmed by a court judgment.
The Concept of "Interruption": The Creditor's Only Hope
The prescription clock (e.g., 3 years) can be reset to zero if it is "interrupted." This is a legal concept, and debt collectors are trained to trick consumers into causing an interruption. The clock restarts if:
You Acknowledge the Debt: This can be as simple as saying "I know I owe the money" on a recorded call, or responding to an email in a way that admits the debt is yours.
You Make a Payment: Paying even R1 towards an old debt immediately revives it and resets the 3-year prescription period.
A Summons is Served: If the creditor serves a legal summons on you before the 3 years are up, the process is interrupted.
How Dispute It Leverages the Prescription Act for You
This is not a DIY matter. It's a legal minefield.
- We Isolate You: The moment you're our client, we forbid all creditors and collectors from contacting you directly. This prevents you from being tricked into interrupting prescription.
- We Demand Proof: When a collector contacts us about an old debt, we do not discuss payment. We issue a formal demand for them to provide proof that the debt has not prescribed. This means they must produce evidence of a payment or acknowledgement from you within the last three years.
- We Dispute the Listing: We simultaneously log a legal dispute with the credit bureaus, stating that the debt has prescribed under the Act and must be removed. The burden of proof is on the creditor. In most cases, they have none.
- We Enforce Removal: Faced with a legally sound argument from a professional firm, the creditor or bureau will almost always remove the illegal listing. If they don't, we escalate immediately.
The Prescription Act is one of the most powerful tools for cleaning a credit report. Let our experts wield it on your behalf.
The credit repair process is complex and requires specialist knowledge to ensure success. Don't risk handling it alone. Our experts at Dispute It are ready to manage your case and deliver results.