Never say "yes, that's my debt"
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A debt collector phones about an old account you'd forgotten. Before you say a word, work out when you last paid anything on it, or when you last admitted it was yours.
If that's more than three years ago, and nobody ever served you with a summons, the debt has probably prescribed. Credit cards, personal loans, clothing accounts, cellphone contracts - Section 126B of the National Credit Act makes it illegal to collect those debts, sell them or reactivate them.
But there’s a catch: The moment you acknowledge that debt, or pay even R50 towards it, the three-year clock starts again.
So say nothing, and ask them to prove when you last paid.
The aim of this legal protection is to encourage creditors to collect debt quickly, rather than let it accumulate interest and costs for years and then demand that bloated sum from the debtor.
If that's more than three years ago, and nobody ever served you with a summons, the debt has probably prescribed. Credit cards, personal loans, clothing accounts, cellphone contracts - Section 126B of the National Credit Act makes it illegal to collect those debts, sell them or reactivate them.
But there’s a catch: The moment you acknowledge that debt, or pay even R50 towards it, the three-year clock starts again.
So say nothing, and ask them to prove when you last paid.
The aim of this legal protection is to encourage creditors to collect debt quickly, rather than let it accumulate interest and costs for years and then demand that bloated sum from the debtor.
