It hasn't been a good year for firms and attorneys who specialise in debt collection. There was that sensational Western Cape High Court judgment earlier this month, which exposed shamefully abusive practices in the "garnishee" orders industry, but the industry's annus horribilis kicked off months ago, on Friday March 13, to be exact.That's the day the amendment to the National Credit Act (NCA) came into force, delivering several "wins" for debt-trapped South Africans, including the outlawing of the collection or selling of prescribed debt, and the automatic, free removal of credit bureau "blacklistings" when a debt is paid.The consumers' gain is the debt-collecting industry's considerable loss, so it's no surprise that some have devised ways to keep debtors coughing up.The collection of prescribed debt had grown into a massive industry, with collectors buying books of written-off debt from credit providers for "a few cents in the rand", inflating those written-off amounts with many years' worth of interest and costs, and then tracking down consumers and badgering them to pay debts which most barely remembered.If, in the previous three years, a debt hasn't been acknowledged, no payment has been made, and no summons issued, it has prescribed and the debtor is no longer liable to pay it.(Note: Home loan and all government-related debts only prescribe after 30 years.) Before March 13, though, if a consumer didn't know about the defence of prescription, and made a promise to pay, or a payment, they were locked into paying the entire inflated debt.So prescription was only a protection for clued-up consumers.But the March amendment changed that, making it illegal for a company to sell a prescribed debt, or to collect a debt that has prescribed: It's no longer up to the consumer to know about the Prescription Act in order to raise it as a defence and thus avoid paying an old debt.This applies to all credit agreement-related debt - car and home loans, credit card accounts, store accounts and the like - which accounts for the majority of debts in SA.Predictably, some debt collectors have come up with creative ways to get around this revenue killer.Take the case of Stephan du Plessis. He is being contacted via SMS and phone in relation to a prescribed debt, by collectors Vertex Solutions - part of the Nimble Group."When I complained, they responded with an e-mail detailing procedures that I have to follow to claim prescription."The Nimble Group argues on its website that "where the credit provider can prove that the consumer was ... made aware of the defence of prescription and did not raise the defence of prescription, the reactivation and continued collection of prescribed debts is not prohibited".That explains the information on its website about prescription and the "Submit Prescription Claim" icon.To my mind, that interpretation clearly seeks to defeat the intention of the amendment.The National Credit Regulator agrees."Whether the consumer knows about the prescription defence or not, the debt has prescribed and there should be no collection or reactivation of it," a spokesman said."It is clear that the debt collector is circumventing the application of this provision ... and misleading consumers."The NCR would be "dealing with" this case.Vertex Solutions has not responded to my e-mailed query.Contact Wendy:E-mail: wendy@knowler.co.zaTwitter: @wendyknowlerConfuse and conquerUntil March 13, if you had an "adverse listing", or were "blacklisted", by a credit bureau, your listing would remain, for up to five long years in the case of a judgment against you, even if you had paid the debt - blocking you from getting more credit.Now, thanks to the NCA amendment, if you pay the debt in full, the blacklisting must be expunged from your credit bureau record - without you having to do anything or pay a fee.But some attorneys appear to be confusing consumers who have paid their debts fully and are desperate to be rid of the blacklisting by telling them that they still need to pay them a hefty fee to have the judgment rescinded.Leigh-Ann Phaal, of Durban, had two debt judgments, against her and her husband jointly, which they paid in April."My attorney said that, because the judgment was made in December, we don't qualify to have it rescinded free, and that we had to pay R400 for letters advising that the debt was paid in full, and a further R4000 to remove the judgment."Deputy Credit Ombud Reana Steyn said it was irrelevant when the judgment was made: the new law states that judgment information must be expunged from the credit bureau's records once the debt is paid - period."The judgment will remain in a court file, she said, but if nobody knows about it, it should not matter - it's the credit bureau listing that affects the consumer."My advice is to check first if the judgment still reflects against their name at the bureau. If it does, contact the credit bureau and lodge a dispute about the judgment information, sending proof of settlement."If the bureau does not remove the information, then the consumer can contact the Credit Ombud and we will ensure that it is done."Bottom line - don't get suckered into paying thousands to have a debt judgment rescinded...