The Prescription Act, which was passed into in South Africa, sets out specific instances were debt becomes prescribed.
In essence, when a debt has prescribed, you no longer have an obligation to pay such a debt and the concerned creditor no longer has a right to demand payment from you for such a debt.
In terms of the law, the requirements to have a debt prescribed are that:
- You should have not paid the debt for 3 years or more.
- You should have not acknowledged the debt for 3 years or more.
- The concerned creditor must have not started legal proceedings regarding the debt or obtained judgement for the concerned debt.
A prescribed account reflecting on your credit report lowers your credit rating, as the account is likely to be reflecting arrears and indicating that you are a slow payer, whereas the account should not even be reflecting on your records anymore.
Having prescribed debt removed from a credit report across all registered credit bureaus is an exceptionally challenging task for many consumers.
This is why we, at Clear Debt Review, are taking on this task to ensure that consumer’s can have prescribed debt removed from their records as quickly as possible.