The Prescription of Debt
The Prescription of Debt - When you can't be forced to pay...
By Paul SlotOctogen Pty [URL Removed] phone rings and the agent on the other end inform you that you have not paid your debt. You have no idea what debt he is talking about and the person on the other end says "Just pay R20.00. That is all we ask for". This is an old trick used by Debt Collectors to collect prescribed debt. The Prescription Act provides that the basic period of prescription shall be 30 years in respect of any 'judgement of debt' and 3 years for 'any other debt'. The effect is that in the case of 'any other debt' where no payment has been made for a period of 3 years, the debt has "prescribed". This means that the debt has been completely distinguished and does not have to be paid. The prescription of debt should not be confused with "debt written off" by Credit Providers. In many cases Credit Bureau reports will show 'Debt written off". The legal right to collect debt is retained by Credit providers even if they have written the debt off. In many cases Creditors' can sell their Debtor's Book to Debt Collectors - who will then collect the debt. These Debt Collecto
0 comments