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Prescribed debts: When do you no longer have to pay?

19 May 2022 6:40 AM
Tags:
National Credit Act
bills
Prescribed debt

Zain Johnson spoke to Moeshfieka Botha about prescribed debt and when we are no longer obligated to pay.

Many people know the feeling of reaching payday and immediately having to pay countless bills. But are there some bills that don't need to be paid?

Zain Johnson spoke to Moeshfieka Botha about prescribed debt and when we are no longer obligated to pay.

Prescribed debt refers to an old debt, in most cases around three years old, which the consumer is no longer liable to pay. This occurs when there has been no verbal or written acknowledgment of the debt in this period.

In 2015, amendments were made to the National Credit Act, which made it unlawful for debt collectors or credit providers to try and collect payment on a prescribed debt.

It’s important to note that not all debts do prescribe after the three-year period. Larger accounts such as home loans, as well as municipal debts or TV licences do not prescribe and the consumer will still be liable to pay.

The types of debts that do prescribe are generally retail accounts, gym memberships or cell phone accounts.

While this is not encouragement to avoid paying off your debts, it is important for consumers to know what their legal rights and obligations are, especially after COVID-19, which has disrupted people's streams of income.

Listen to the audio above to find out more about prescribed debt and what to do if the debt collector calls.




19 May 2022 6:40 AM
Tags:
National Credit Act
bills
Prescribed debt

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