What Is Prescribed Debt?
Prescribed debt is a type of debt that has gone beyond the legal time limit for collection in South Africa. It is usually six years from the date of last payment or acknowledgement. After this period, it can no longer be legally enforced by credit providers and must be removed from your credit report as a matter of law.
Why Is It Important To Remove Prescribed Debt From Your Credit Report?
Having prescribed debt on your credit report can impact your ability to get new loans or lines of credit because lenders view you as more risky when they see prescribed debt listed on your profile. Removing this type of negative information could make it easier to qualify for future financing opportunities. Additionally, ensuring that all negative information is accurately reflected on your credit report will ensure that any potential lenders have an accurate picture and understanding of your overall financial health.
How To Remove Prescribed Debt From Your Credit Report
The process for removing prescribed debt from one’s credit report requires taking certain steps:
1) Check if anything appears on the National Credit Regulator (NCR) website – This website provides access to records related to consumer rights and responsibilities under South African law pertaining to lending activities and consumers’ debts with creditors who are registered with the NCR. On this site, you should search for any listings regarding debts which may have been prescribesd due their age exceeding six years past last payment or acknowledgement by yourself or creditor involved in the transaction .
2) Request confirmation letter from creditor – If there is indeed a listing relating to an old debt appearing here, then send correspondence requesting confirmation letter stating that said account has been paid off/settled or otherwise extinguished due its having become legally prescribed (beyond 6 year mark). This correspondence should include full details about yourself along with contact details so they can reply back easily .
3) Submit dispute form – Once received , submit dispute form online via designated channels addressing NCR directly asking them remove such entries associated with specific accounts appearing on record . All relevant documents including copy letters confirming extinguishment must also be attached at time submission forms being made .
4) Wait For Resolution – Lastly , wait patiently until decision reached either way before taking next course action if needed . Depending how quickly respective institution processes complaint(s), resolution might take up few weeks but result will worth effort put into entire process once everything resolved favourably & all outdated negativities eventually wiped clean slate allowing fresh start moving forward again !
