Johannesburg - Many consumers are tricked by debt collectors into paying for debt that has been prescribed, according to National Debt Mediation Association (NDMA) CEO Magauta Mphahlele.
She said that through their national credit help line they receive a lot of enquiries from consumers that are being harassed or being called by debt collectors that are collecting monies that they feel that they don’t owe or monies that have prescribed.
“In terms of the law, prescription means that if three years have passed that you haven’t paid a debt and there has not been an acknowledgement by yourself of that debt, you have not paid anything, there has not been a summons and there has not been a judgement for that debt it might be prescribed, which means that you are not liable for paying that debt anymore.”
Mphahlele said the challenge is that a lot of consumers don’t know how prescription works and the mistake that they make is to acknowledge the debt.
“The minute you say yes it means that prescription is interrupted”.
Listen to the interview to find out how to answer debt collectors:
- Fin24
She said that through their national credit help line they receive a lot of enquiries from consumers that are being harassed or being called by debt collectors that are collecting monies that they feel that they don’t owe or monies that have prescribed.
“In terms of the law, prescription means that if three years have passed that you haven’t paid a debt and there has not been an acknowledgement by yourself of that debt, you have not paid anything, there has not been a summons and there has not been a judgement for that debt it might be prescribed, which means that you are not liable for paying that debt anymore.”
Mphahlele said the challenge is that a lot of consumers don’t know how prescription works and the mistake that they make is to acknowledge the debt.
“The minute you say yes it means that prescription is interrupted”.
Listen to the interview to find out how to answer debt collectors:
- Fin24