Should you ever be contacted regarding prescribed debt here is a template you can use in replying to an email regarding the debt. - DO NOT ENGAGE TELEPHONICALLY WITH DEBT COLLECTORS - ALWAYS INSIST ON THEM SENDING YOU AN EMAIL (Just copy and paste)
Dear sir/Madam
I refer to your recent phone call/
email/sms regarding an alleged outstanding account of................apparently
owed to messrs............................................
In terms of the amendment of the National
credit act that came into force on the 13th day of March 2015 the
following now applies : (Whether you act on behalf of the original creditor or
as the new owner of the debt in terms of a purchase agreement with the original
creditor)
“The following section is hereby inserted in the principal
Act after section 126A:
‘‘Application of prescription of debt - 126B. (1) (a) No person may sell a debt under a credit agreement to which this Act applies and that has been extinguished by prescription under the Prescription Act, 1969 (Act No. 68 of 1969).
(b) No person may continue the collection of, or re-activate a debt under a credit agreement to which this Act applies— (i) which debt has been extinguished by prescription under the Prescription Act, 1969 (Act No. 68 of 1969); and (ii) where the consumer raises the defence of prescription, or would reasonably have raised the defence of prescription had the consumer been aware of such a defence, in response to a demand, whether as part of legal proceedings or otherwise.’’.
‘‘Application of prescription of debt - 126B. (1) (a) No person may sell a debt under a credit agreement to which this Act applies and that has been extinguished by prescription under the Prescription Act, 1969 (Act No. 68 of 1969).
(b) No person may continue the collection of, or re-activate a debt under a credit agreement to which this Act applies— (i) which debt has been extinguished by prescription under the Prescription Act, 1969 (Act No. 68 of 1969); and (ii) where the consumer raises the defence of prescription, or would reasonably have raised the defence of prescription had the consumer been aware of such a defence, in response to a demand, whether as part of legal proceedings or otherwise.’’.
You are hereby formally informed that the
alleged debt (if it existed) has prescribed and any attempt at collecting on
this is thus illegal. Point b – Highlighted
for your attention is very clear on this point – No person (that
will include your good selves) may continue the collection of a credit
agreement to which this act applies which debt has been extinguished by
prescription under the Prescription act 68 of 1969. In terms of (b1) above I hereby
raise the defence of prescription as per my right in terms of the prescription
act.
I would appreciate you stop contacting me in
this regard as this constitute harassment in terms of the Protection from Harassment Act, 2010.
Yours faithfully,
Your name
This message is send without prejudice and with all rights
reserved in as far as might be applicable: Nothing
contained in this message constitutes an offer , warranty or representation from me.
Does this apply retrospectively?
ReplyDeleteOnce a debt is past the 3 year mark it has prescribed. if anyone contact you now regarding prescribed debt you can raise this defense...........You are welcome to send me details of exactly what you mean by retrospective to johnbrandow@ mweb.co.za
DeleteAfternoon John, may I please also forward you an email? I need some assistance with regards to an old acc.
DeleteGood day John. May I also email you at with regards to an old acc? Regards Karen.
Deletejohnbrandow@mweb.co.za
DeleteI received an astronomical account from Tshwane for reassessment of my empty property. Can KICK MYSELF that I did not go check the newest valuation role - which WAS open for inspection!
ReplyDeleteRemember that prescription does not apply to Rates, taxes and tv licenses. This actually applies to all license fees.
DeleteWhat if you already agreed to pay monthly installments
ReplyDeleteDepending on when that arrangement was made - Changes to the act on the 13th of March 2015 gives you the option to claim prescription when you became aware of your rights. As I have it if the arrangement was made before that date it will stand - if it was made after that date send them an email along the lines of my template.
ReplyDeleteI was handed over for a debt for municipality account, the property was registered in my name 2010, the occupant did not want to move. It was a legal battle for over 5 years. She's since moved out in April, am handed over for the bill her bill. The Municipality is not willing to listen to anything they want the account settled.
ReplyDeleteI have a dept that is more than ten years old (R6500.00). 18 months ago, a debt collecting company managed to put a debitor onto my account without my consent or knowledge. An amount of first R900.00 and then R1600.00 was removed from my account. I called my bank and reported this. The bank claimed that due to the fact that the money was owed to them, they had allowed the debt collectors to due so. The debt collectors are now harrasing me everyday ,as they claim I accknowledged the dept in that I started paying back by debit order. Needless to say, I had to change banks. Is this debt still prescribed.
ReplyDeleteYes it did prescribe and they cannot claim this from you unless there was a judgment during the first 3 years. In fact if I were you I would claim that money back via small claims court from who ever took it out of your account if that debit happened in the last 3 years !
Delete