My Debt Has Prescribed, How Do I Remove It from My Credit Report?

What is Prescribed Debt?

Prescribed debt is old debt that can no longer be collected if:

• No payments have been made in three years (for most types of debt).
• You have not acknowledged the debt in writing.
• No legal action has been taken by the creditor.

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Legal Timeframes for Debt Prescription

According to Section 11 of the Prescription Act 68 of 1969, debt prescribes within the following periods:

What the National Credit Act Says About Prescribed Debt

The National Credit Act (NCA) 34 of 2005 protects consumers from being forced to pay prescribed debt:

• Section 126B(1)(b): Credit providers cannot sell, collect, or list prescribed debt.
• Regulation 20(2): Credit providers have 20 business days to respond to disputes.
• Regulation 17(4): Credit bureaus must investigate and resolve disputes within 20 business days.

How to Remove Prescribed Debt from Your Credit Report

Step 1: Dispute the Debt with the Credit Provider

Send a dispute letter to the credit provider, stating that the debt has prescribed and requesting its removal.

Step 2: Dispute the Debt with the Credit Bureau

If the credit provider refuses, contact the major credit bureaus:

• TransUnion: dispute@transunion.co.za
• Experian: consumer@experian.co.za
• XDS: disputes@xds.co.za
• Compuscan: info@compuscan.co.za

Step 3: Escalate to the National Credit Regulator (NCR)

If the debt is not removed, escalate the dispute to:

• National Credit Regulator (NCR): complaints@ncr.org.za
• National Financial Ombud : https://nfosa.co.za/submit-a-complaint

Sample Dispute Letter for Prescribed Debt

Subject: Dispute Regarding Prescribed Debt – Account [Account Number]

Dear [Credit Provider/Credit Bureau],

I am formally disputing the listing of an account in my name, as I believe the debt has prescribed under Section 10(1) of the Prescription Act 68 of 1969.

• Account Holder: [Your Full Name]
• ID Number: [Your ID Number]
• Credit Provider: [Name of the Creditor]

Legal Grounds for Dispute:

• No payments or acknowledgments in 3+ years.
• No legal action has been taken.
• Section 126B(1)(b) of the NCA prohibits collecting prescribed debt.

Request:

• Remove this prescribed debt from my credit report.
• Provide written confirmation of the removal.
• Respond within 20 business days as per Regulation 20(2) of the NCA.

If you fail to comply, I will escalate the matter to the National Credit Regulator (NCR) or Credit Ombud.

Sincerely,
[Your Name]
[Your Contact Information]

Timeline for Prescribed Debt Disputes

Final Thoughts

Understanding prescribed debt can help consumers avoid illegal debt collection. If your debt has prescribed, you have the right to dispute it and remove it from your credit record. Follow these steps to ensure your financial history remains clean.

? Need assistance? Consult a registered Debt Counsellor today! https://www.dcasa.co.za/debt-counsellor-near-me/