Your money: 4 facts you need to know about prescribed debt

accreditation
Share your Subscriber Article
You have 5 articles to share every month. Send this story to a friend!
0:00
play article
Subscribers can listen to this article
Couple in debt. (Photo: Gallo Images/Getty Images)
Couple in debt. (Photo: Gallo Images/Getty Images)

You get a call out of the blue from someone who claims you’re thousands of rands in arrears for a gym membership you took out years ago. You can remember taking out the membership and then cancelling it when you moved home. But now it’s your word against the gym’s. 

Before you pay up, make sure you know your rights. Debts incurred three years ago can become prescribed, which means you aren’t legally obligated to pay up. But there are several provisos for this to apply and you won’t be off the hook if you’re simply trying to duck your responsibilities. 

1 WHAT KIND OF DEBTS CAN BECOME PRESCRIBED AND AFTER WHAT PERIOD? 

Support independent journalism
Subscribe to News24 for just R75 per month to read all our investigative and in-depth journalism.
Subscribe
Already a subscriber? Sign in