Prescription of Debt in South Africa: When Is a Debt Written Off?

One of the most common questions in debt collection is:“Has this debt prescribed?”

In South Africa, prescription is a legal concept that limits how long a creditor has to enforce a debt. Once a debt has prescribed, it is no longer legally enforceable — even if the money is still owed morally.

This article explains what prescription is, how long it takes, what interrupts it, and why both creditors and debtors need to understand it.

1. What Is Prescription of Debt?

Prescription refers to the period after which a debt becomes legally unenforceable due to the passage of time.

The rules governing prescription are set out in the Prescription Act 68 of 1969.

Once a debt has prescribed:

• The creditor may no longer legally enforce payment

• The debtor may raise prescription as a defence

• Attorneys and debt collectors may not threaten legal action on a prescribed debt

2. How Long Does It Take for a Debt to Prescribe?

The prescription period depends on the type of debt.

Common Prescription Periods

• 3 years – Most unsecured debts (credit cards, personal loans, overdrafts, retail accounts, medical bills)

• 6 years – Debts arising from bills of exchange or notarial bonds

• 15 years – Mortgage bonds

• 30 years – Court judgments

Most consumer debt prescribes after three years, provided certain conditions are met.

3. When Does Prescription Start Running?

Prescription begins when the debt becomes due and payable — not when the creditor becomes aware of the debt.

This is usually:

• The date of default

• The date of the last contractual payment

• The date specified in the agreement

Understanding this date is crucial when assessing whether a debt has prescribed.

4. What Interrupts Prescription?

Prescription does not simply run automatically. Certain actions can interrupt it and cause the period to start again from zero.

Prescription Is Interrupted By:

✔ Any payment made by the debtor (even a small amount)

✔ Written or verbal acknowledgment of the debt

✔ Service of summons on the debtor

Once interrupted, prescription starts running again from the date of interruption.

5. What Does NOT Interrupt Prescription?

Many debtors assume that phone calls or SMSes automatically interrupt prescription — this is incorrect.

Prescription is not interrupted by:

✖ Collection calls or emails

✖ Credit listing updates

✖ Internal notes or reminders

✖ Automated system actions

Without payment, acknowledgment, or summons, prescription continues running.

6. Can a Prescribed Debt Still Be Collected?

A prescribed debt may not be enforced through legal action.

Under the National Credit Act, it is unlawful to:

• Threaten legal action on prescribed debt

• Induce payment without disclosing that the debt has prescribed

Any attempt to do so may expose the creditor or collector to legal consequences.

7. Prescription vs Judgment

It is important not to confuse prescription of a debt with prescription of a judgment.

• Debt (pre-judgment) – Typically prescribes after 3 years

• Court judgment – Prescribes after 30 years

Once judgment is obtained, prescription effectively resets under a much longer period.

8. Why Prescription Matters for Creditors

For businesses, prescription is a serious financial risk.

Failing to act in time may result in:

• Permanent loss of the claim

• Inability to recover outstanding amounts

• Reduced cash flow

• Potential compliance risks

Early legal action and proper record-keeping are essential to prevent prescription.

Final Thoughts

Prescription of debt in South Africa is a powerful legal principle that protects against stale claims — but it also penalises inaction.

Whether you are a business trying to recover outstanding debt, or an individual unsure whether a debt is still enforceable, professional legal advice is crucial.

If you need assistance assessing whether a debt has prescribed — or ensuring your claims do not prescribe — our team is here to help.

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