Ask Wendy: Pay current debts, not old, prescribed debts

A staggering 40% of South Africa’s 24million credit active consumers have fallen behind in their repayments.

Many of them, plus others who are currently managing to service their current debt, are being hounded to pay old, prescribed debts, despite them being no longer legally required to pay them.

Leigh D asked: "I had an account with a major clothing retailer several years back and was out of work so could not pay it anymore. After about seven or eight years later, a debt collector came to my workplace and demanded my bank details, saying I must pay off R3000 that’s still owed to the retailer. What must I do?"

A: Tell the collector the debt has prescribed long ago, and that that it is now illegal - in terms of the National Credit Amendment Act - to attempt to get someone to pay a prescribed debt.

Instruct them - via email, so there is a record - to either prove that the debt has not prescribed or close your file and not contact you again. In order for the debt not to have prescribed, you would have had to, in the last three years, made a payment, acknowledged owing the money or been issued with a court summons.

Incidentally, the clothing retailer in question would have written off the debt long ago. The collector has bought the debt for a small percentage of its value, boosted that amount with interest and fees, and is now trying to get you to pay that R3000 - to them.

Rather ensure that you are paying off your current debts as you should. It is illegal for a prescribed debt to appear on your credit credit.