Found an old debt on your credit report? Here’s what to do
Reading time: 4 minutes
You check your credit report and spot an old debt you thought was long gone. Now you’re wondering, “Should it still be there?”
This is when you may need to understand how prescribed debt on your credit report works, and what you can do next.
But what is prescribed debt?
If you haven’t paid or acknowledged a debt for a long time, usually three years, and the creditor has not taken certain legal steps to recover it, they may no longer be able to force you to pay it. This is known as prescribed debt.
Although it might still show up on your credit report.
It can also affect your credit score, making your financial position look worse than it is. It may even make it harder to get a loan, credit card or shop account.
Removing incorrect, old or prescribed listings can help clear your name and improve your financial standing.
Here are the next steps to help you get to the bottom of it.
Step 1: Get a copy of your credit report
Before doing anything else, get your latest credit report.
You need to see details like the account information, the outstanding balance and any adverse listings linked to the debt. You also need the credit provider’s information.
You must know exactly what is being reported before you can dispute the information properly.
Remember: You can do an unlimited number of credit score checks and get any number of free credit reports with Finance365.
Step 2: Check the last payment date
The next step is finding out when the last payment was made towards that debt.
For many debts, the prescription period is three years. This can apply to credit cards, personal loans, shop accounts and medical accounts.
The dates matter because prescriptions are largely based on the passage of time.
Step 3: Check if you acknowledged the debt
Many consumers don’t realise that making a payment or admitting that a debt is theirs can restart the prescription period.
Ask yourself:
- Have I made any payments?
- Have I signed any documents?
- Have I agreed in writing that the debt is mine?
These details can affect whether the debt has prescribed.
Step 4: Ask for proof
If a debt collector or credit provider contacts you, ask for supporting information.
Request:
- The last payment date
- The account history
- Details of any legal action taken
Do this before agreeing to pay anything.
Step 5: Check whether legal action was taken
Under credit prescription law in South Africa, legal action can affect prescription.
If a court judgment was granted or other legal steps were taken, different rules may apply.
This is why it is so important to gather all the facts before assuming a debt has prescribed.
Step 6: Dispute incorrect information
If you believe the debt should not be listed, you can start a formal dispute. This is one of the main ways consumers remove prescribed debt from a credit report.
Get your supporting documents together and submit your dispute to the credit bureau whose information appears on your report.
The bureau must investigate the matter and respond within the required process timeframes.
Step 7: Escalate if necessary
If the issue is not resolved, you may be able to escalate the case.
Depending on the circumstances, assistance may be available through consumer protection channels, industry ombuds or professional debt advisers.
A few important things to avoid
When dealing with prescribed debt in South Africa, try not to:
- Make payments before checking the facts
- Admit that a debt is yours before understanding its status
- Ignore correspondence completely
- Throw away supporting documents
Don’t put off getting prescribed debt removed from your credit report
If you are worried about old debt or unexpected listings, start by checking your credit report.
Finance365 gives you access to your latest credit information anytime, as many times as you need. This helps you see what debts are linked to your name, understand what is being reported and take the next step with more confidence.
