13. How much can a debt collector charge a debtor?
Debt Collectors costs are prescribed by the Debt Collectors Act, 114 of 1998
Attorneys costs are regulated by, but not limited to, the MCA and the NCA where applicable.
14. After how many years does a debt prescribe?
The Prescription Act, Act 68 of 1969 explains the precise forms of prescription together with the period of time applicable to each form.
Prescription in terms of Credit Agreements are governed by the above legislation read together with the provisions of the NCA, where applicable.
Under the Prescription of Debt Act, a debt prescribes (falls away) after three years in most instances if the creditor has made no attempt at that time to communicate with or retrieve the debt from the debtor. However if you are a debtor, don’t assume that simply because the creditor has not communicated with you for three years your debt has prescribed. You may have changed your address or other contact details and not informed the creditor, or the creditor may have resorted to other means such as obtaining a judgement against you to retrieve the debt.
