A few practical steps to protect yourself
Reading time: 4 minutes
Got a call or message about an old debt recently? It can be unsettling, especially if you don’t remember the debt.
You could also be wondering whether you still have to pay it and have searched AI or Google for answers about “NCR prescribed debt”, only to find information that leaves you even more confused.
The first thing to know is that while “NCR prescribed debt” is a popular search term, debt prescription is governed by the National Credit Act (NCA) and the Prescription Act, regulated under the oversight of the National Credit Regulator (NCR).
Here are four useful steps to help you understand what people mean when they talk about NCA prescribed debt, and how Finance365 can apply for prescription on your behalf.
Step 1
Understand how the NCA protects you
While the National Credit Regulator (NCR) regulates South Africa’s credit industry, consumer protection against old debt is anchored in Section 126B of the National Credit Act (NCA).
Under the NCA, it is illegal for credit providers or debt collectors to collect or sell a debt if they know, or reasonably should know, that the debt has prescribed.
Understanding your rights under the NCA can stop you from paying money you no longer legally owe.
Step 2
Find out whether your debt could have prescribed
Many people think every debt automatically expires after three years. It doesn’t.
The debt prescription period for many consumer debts under the NCA is three years, provided you haven’t made a payment, acknowledged the debt, or been served with legal summons during that period.
One of the best places to start if you think you may have prescribed debt is by pulling your credit report. Review the creditor details, account status, and payment dates.
Review it carefully and check:
- The name of the creditor
- The type of account
- The account status
- The dates shown on the listing
These details may help you understand whether the debt prescription period may have run its course. If something doesn’t look right, make a note of it before contacting the credit bureau or creditor.
Step 3
Dispute incorrect information (with Finance365)
If you notice old, prescribed debt lingering on your credit profile, you have the right to have it removed.
Instead of dealing with bureaucratic dispute processes yourself, Finance365 can submit and manage the prescription dispute on your behalf, liaising directly with credit bureaus and credit providers to clean up your record.
This process is called a credit bureau prescription dispute. You may be asked to provide supporting information while the bureau investigates the listing with the credit provider.
If the information is found to be incorrect, it can be updated or removed.
Step 4
Get advice before making a payment
One of the biggest mistakes people make is paying an old debt before verifying its legal status. Even a small “goodwill” payment can restart the prescription clock.
If you suspect you are being hounded for an NCA prescribed debt, don’t guess, and don’t make a payment. Let Finance365 apply for prescription on your behalf. Our specialists will evaluate the legal status of the debt and ensure your rights under the National Credit Act are fully enforced.
Most importantly, start with the facts.
Start by checking your credit report so you can understand what has been recorded before deciding what to do next.
Critically, if you think an old debt may have prescribed, don’t guess and don’t rush into making a payment.
Finance365 gives you unlimited access to your credit score and latest credit report. If you spot an old debt that should have expired, don’t fight it alone—let Finance365 apply for prescription on your behalf.
