In terms of the National Credit Amendment Act, which came into effect on March 13, it is illegal for a company to contact a consumer and demand that they pay a prescribed debt.
This applies to all credit agreement-related debt such as car loans, credit card accounts, store accounts and the like - which constitutes 94% of all debts in South Africa.
A prescribed debt is simply explained as an old debt that has not been acknowledged over a period of three years.
CapeTalk’s John Maytham spoke to Wendy Knowler, Consumer Journalist at Times Media about prescribed debts:
Read the article by Wendy Knowler: Prescribed debt: it pays well to know your rights
Listen to The full conversation on The John Maytham Show: