Prescription of Debts in South Africa: When Does a Claim Expire?

One of the most common and costly mistakes in South African debt recovery is waiting too long to act. Under the Prescription Act 68 of 1969, most debts expire after a fixed period — and once a debt has prescribed, it is extinguished. You cannot enforce it, regardless of how clear-cut your claim was.

This guide explains how prescription works in South Africa, which debts are affected, how to interrupt prescription before it runs, and what to do if you are worried your claim may be close to expiring.

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What Is Prescription?

Prescription is the legal process by which a debt or claim is extinguished after a specified period of time has passed without the creditor taking steps to enforce it. The purpose of prescription is to provide certainty — debtors should not face indefinite exposure to old claims, and courts should not be burdened with stale disputes where evidence has been lost and memories have faded.

Once a debt has prescribed, the debtor has a complete defence to any claim based on that debt. The creditor cannot sue, cannot obtain judgment, and cannot enforce payment — even if the debt was undisputed and the amount is clear.

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The Prescription Periods

The Prescription Act sets out different prescription periods depending on the type of debt:

Type of debt	Prescription period
General contractual debts (most commercial claims)	3 years
Mortgage bonds	30 years
Judgments of court	30 years
Debts owed to the state	30 years
Certain claims under the Road Accident Fund Act	3 years
Delictual claims (damages for wrongful acts)	3 years
Claims under the Labour Relations Act	Varies (generally 3 years for unfair dismissal referral to CCMA is 30 days, but civil claims 3 years)

The three-year period applies to the vast majority of commercial and personal debts — unpaid invoices, breach of contract claims, loan repayments, rental arrears, and similar obligations.

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When Does Prescription Begin to Run?

Prescription begins to run when the debt becomes due — that is, when the creditor has the right to demand payment or performance, and the debtor is obliged to pay or perform.

However, the Prescription Act introduces an important qualification: prescription does not begin to run until the creditor has knowledge of:

1. The identity of the debtor
2. The facts from which the debt arises

If the creditor does not know (and could not reasonably have known) who owes the debt or what gives rise to it, prescription is delayed until that knowledge is acquired or could reasonably have been acquired.

Practical examples

Unpaid invoice: Prescription begins to run on the date the invoice was due for payment (e.g. 30 days after the invoice date, if those were the agreed terms).

Breach of contract: Prescription begins to run on the date the breach occurred — or, if the breach was concealed, when the innocent party discovered it or could reasonably have discovered it.

Loan repayment: Prescription begins to run on the date the loan was due to be repaid. If the loan is repayable on demand, prescription begins to run when demand is made.

Delictual claim (e.g. damages for negligence): Prescription begins to run when the claimant has knowledge of the identity of the wrongdoer and the facts giving rise to the claim.

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How to Interrupt Prescription

Prescription can be interrupted — meaning the clock stops and starts again from zero — in three ways:

1. Acknowledgement of debt by the debtor

If the debtor acknowledges the debt in writing (or in some cases verbally, with corroborating evidence), prescription is interrupted. The acknowledgement must be clear and unequivocal — a vague reference to "the matter" or "what we discussed" may not be sufficient.

A partial payment of a debt is also treated as an acknowledgement of the balance.

2. Service of process

Prescription is interrupted when the creditor serves process on the debtor — typically by issuing and serving a summons or application in court. The interruption occurs on the date of service, not the date of issue.

Important: Simply issuing a summons without serving it does not interrupt prescription. The summons must be served on the debtor within the required period.

3. Agreement between the parties

The parties can agree in writing to extend the prescription period or to waive prescription. Such agreements are enforceable.

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What Does NOT Interrupt Prescription

Many creditors mistakenly believe that sending a letter of demand, making a telephone call, or sending a WhatsApp message interrupts prescription. It does not.

Under the Prescription Act, only the three methods above — acknowledgement of debt, service of process, or written agreement — interrupt prescription. A letter of demand, however strongly worded, does not stop the clock.

This is a critical point: if your claim is approaching the three-year mark, sending a letter of demand is not enough. You need either an acknowledgement of debt from the debtor, or you need to issue and serve court process.

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Delay of Prescription

In certain circumstances, prescription is delayed — it does not begin to run, or is suspended, during a defined period:

• While the debtor is a minor (under 18)
• While the debtor is mentally ill or under curatorship
• While the creditor and debtor are married to each other (prescription does not run between spouses during the marriage)
• While the creditor is prevented by superior force (vis maior) from interrupting prescription
• While the parties are engaged in conciliation or arbitration proceedings in certain circumstances

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Prescription and the National Credit Act

For credit agreements regulated by the National Credit Act 34 of 2005, additional rules apply. A credit provider cannot enforce a prescribed debt — and the NCA imposes specific obligations on credit providers regarding the prescription of credit agreements.

If you are dealing with a debt under a credit agreement (personal loan, credit card, store account, vehicle finance), the NCA rules interact with the Prescription Act and specialist advice is recommended.

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What to Do If Your Claim Is Approaching Prescription

If you have an outstanding claim that is approaching the three-year mark, act immediately:

1. Calculate the prescription date carefully. When did the debt become due? When did you first have knowledge of the debtor's identity and the facts giving rise to the claim?

2. Send a letter of demand — but do not rely on it to interrupt prescription. A letter of demand is good practice and may prompt payment, but it does not stop the clock.

3. Obtain an acknowledgement of debt. If the debtor is willing to acknowledge the debt in writing, this interrupts prescription and gives you more time.

4. Issue and serve court process before the prescription date. If the debtor will not acknowledge the debt, you must issue and serve a summons or application before prescription runs. Do not leave this to the last moment — service can take time.

5. Consider mediation or structured negotiation. If the amount is significant, a structured negotiation with a clear deadline may resolve the matter before prescription becomes an issue.

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What to Do If You Are the Debtor

If a creditor is pursuing a debt that you believe has prescribed:

1. Do not acknowledge the debt. Any acknowledgement — written or verbal — interrupts prescription and restarts the clock.
2. Do not make partial payment. Partial payment is treated as an acknowledgement of the balance.
3. Raise prescription as a defence. If the creditor issues proceedings, prescription must be raised as a special plea in your defence. It is not automatically considered by the court — you must raise it.
4. Get a professional assessment. Prescription calculations can be complex, particularly where the start date is disputed or where there have been partial payments or acknowledgements.

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Summary

Most debts in South Africa prescribe after three years. Prescription begins to run when the debt is due and the creditor has knowledge of the debtor's identity and the relevant facts. It is interrupted only by acknowledgement of debt, service of court process, or written agreement — not by letters of demand or telephone calls. If your claim is approaching the three-year mark, act now.

ClauseWise assists with debt recovery matters — from letters of demand to preparing documentation for formal proceedings — at fixed prices.

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ClauseWise provides legal support and commercial advisory services. This article is for general information only and does not constitute legal advice. For advice specific to your circumstances, please consult an admitted attorney.