When Does a Legal Claim Expire in South Africa? Prescription Explained in Plain English

 

Written by Roy Bregman, admitted attorney with over 51 years' experience in litigation and debt recovery. Last updated: 6 August 2026.

Key Takeaways •      Most debts expire after three years. If you do not sue or obtain an acknowledgement of the debt in time, your claim is permanently extinguished, meaning it ceases to exist in law. •      The clock only starts when you know enough to sue. Prescription begins when you know the identity of the debtor and the essential facts of your claim, or when you reasonably could have known them. •      The Supreme Court of Appeal confirmed in July 2026 that a homeowner's damages claim against a builder for structural defects only becomes due once the builder has failed or refused to repair after a reasonable opportunity, not when the defects are first discovered. •      You can stop the clock. Serving a summons resets prescription, and so does an acknowledgement of the debt, such as a part payment or a written promise to pay.

 

What Does Prescription Mean in South African Law?

Prescription is the legal rule that puts an expiry date on debts and claims. It is often called the "use it or lose it" rule, and it is governed mainly by the Prescription Act 68 of 1969. If you wait too long to enforce a claim, the law extinguishes it, which means the debt ceases to exist and can no longer be recovered in court.

In legal language, the person who is owed the money or performance is called the creditor, and the person who owes it is called the debtor. When a debtor is sued on an old claim, they can raise what is called a special plea of prescription, which is a formal defence asking the court to dismiss the claim purely because too much time has passed.

The rule exists for good reasons. Disputes should be resolved while documents still exist and memories are fresh, and nobody should live indefinitely under the threat of a decades old claim. The law therefore expects creditors to act diligently and not to sleep on their rights.

How Long Do I Have Before My Claim Prescribes?

For most everyday debts, you have three years. This covers claims such as money lent, unpaid invoices for goods or services, arrear rent, damages for breach of contract, and most personal injury claims. The Prescription Act sets longer periods for certain special categories of debt, summarised below.

Type of debt	Prescription period	Everyday examples
Ordinary debts	3 years	Loans between individuals, unpaid invoices, arrear rent, damages claims
Debts arising from a negotiable instrument or notarial contract	6 years	Cheques, promissory notes, notarial bonds
Debts secured by a mortgage bond, judgment debts, and certain debts owed to the state	30 years	Home loan debt secured by a bond, a court judgment for payment, taxes

 

Some statutes create their own special time limits, for example claims against the Road Accident Fund. Always check whether specific legislation applies to your claim before assuming the ordinary three year period applies.

When Does the Prescription Clock Start Ticking?

The clock starts as soon as the debt becomes due, which means the moment you are legally entitled to claim payment or performance. Section 12(3) of the Prescription Act adds an important protection: a debt is not treated as due until the creditor knows the identity of the debtor and the facts from which the debt arises. However, you cannot simply close your eyes, because the law deems you to have knowledge you could have acquired by exercising reasonable care.

Do I need to understand the law before the clock starts?

No, you only need to know the essential facts, not the legal conclusions that flow from them. The courts have repeatedly held that prescription starts running once you have the minimum facts necessary to institute action. Not knowing that those facts give you a legal claim will not delay prescription, which is why obtaining legal advice early is so important.

What about loans repayable on demand?

A loan repayable on demand generally becomes due, and prescription starts running, the moment the money is advanced, not when you eventually demand repayment. The Constitutional Court confirmed this in Trinity Asset Management (Pty) Ltd v Grindstone Investments 132 (Pty) Ltd [2017] ZACC 32, where a lender lost a claim of over R4.5 million because it waited more than three years after advancing the loan before demanding repayment. If you want demand to be a precondition for repayment, the contract must say so clearly.

What Have the Courts Decided Recently About Prescription?

Janse van Vuuren v WJB Stieger Konstruksie (SCA, July 2026): building defect claims

In Janse van Vuuren v WJB Stieger Konstruksie (Pty) Ltd [2026] ZASCA 102, the Supreme Court of Appeal gave homeowners important relief. Mr Janse van Vuuren contracted a builder in 2015 to construct his home in Rustenburg. He took occupation in October 2016, cracks and other defects appeared within months, and an engineer confirmed major structural defects in January 2018, finding the house uninhabitable.

The builder attempted repairs as late as October 2018 but never fixed the problems. When the homeowner sued for damages of over R4.6 million in January 2021, the builder argued that the claim had prescribed because the homeowner had known about the defects since 2017.

The SCA rejected that argument. It held that knowing about the defects is not the same as knowing the builder has breached its warranty to repair them. Under the Housing Consumers Protection Measures Act 95 of 1998, the builder must first be given a reasonable opportunity to repair. Only when the builder fails or refuses to repair does the damages claim become due and the prescription clock start. Because the builder was still attempting repairs in October 2018 and never refused to repair, the claim issued in January 2021 had not prescribed.

Stemmet v Mokhethi (SCA, 2023): a warning for property buyers

The outcome is very different where no repair warranty is involved. In Stemmet and Another v Mokhethi and Another [2023] ZASCA 127, buyers of a Bloemfontein home discovered hidden defects, called latent defects, shortly after purchase in 2013. By mid-2014 they knew of the defects and who the sellers were, yet they only served summons in July 2017.

The SCA held that the claim had prescribed. Once the buyers knew of the defects and the identity of the sellers, they had the minimum facts needed to sue, and the three year period ran out before summons was served. The lesson is clear: where your claim does not depend on first giving the other party a chance to fix the problem, the clock starts as soon as you know the essential facts.

Can the Prescription Clock Be Paused or Reset?

Yes, the law recognises two mechanisms, interruption and suspension. Interruption resets the clock to zero, while suspension pauses it temporarily.

Interruption: resetting the clock

Prescription is interrupted when the creditor serves legal process, typically a summons, on the debtor. It is also interrupted when the debtor acknowledges liability, expressly or by conduct. An acknowledgement includes making a part payment, paying interest, promising to pay, or asking for more time. After an interruption, a fresh prescription period starts running.

Suspension: pausing the clock

Section 13 of the Prescription Act delays the completion of prescription where the creditor is unable to act, for example where the creditor is a minor, is under curatorship, is married to the debtor, or where the debtor is outside the country. When the impediment, meaning the obstacle, falls away, the creditor is given at least a year to act before the claim can prescribe.

What Should I Do to Protect My Claim From Prescribing?

Act early and create a paper trail. Follow these practical steps:

•      Diarise the key dates. Record when the debt became due and when you first learned the essential facts and work out your deadline conservatively.

•      Get legal advice promptly. Waiting to understand your legal position does not delay prescription, so consult an attorney as soon as a problem arises.

•      Send a written demand. A letter of demand does not interrupt prescription on its own, but it starts the enforcement process and often produces an acknowledgement.

•      Secure an acknowledgement of debt in writing. A signed acknowledgement, a part payment, or a written promise to pay resets the clock and strengthens your claim.

•      Issue and serve summons in good time. Only service of legal process reliably interrupts prescription, so do not leave it to the last weeks.

•      For building defects, give the builder a written opportunity to repair, keep records of every repair attempt, and act decisively once the builder fails or refuses to fix the problem.

Conclusion: Why Deadlines Decide Cases

Prescription is one of the most unforgiving rules in South African law. Courts regularly dismiss otherwise strong claims purely because the creditor waited too long, as the buyers in Stemmet discovered. At the same time, the 2026 Janse van Vuuren judgment shows that the clock does not always start when you first notice a problem, and that the details of your contract and the relevant legislation can make all the difference.

Whether you are a consumer owed a refund, a business chasing unpaid invoices, or a homeowner facing building defects, the safest course is the same: establish your deadline early, protect it in writing, and enforce your rights before time runs out.

Frequently Asked Questions

How long before a debt prescribes in South Africa?

Most debts prescribe after three years, including loans, unpaid invoices, and damages claims. Debts under negotiable instruments or notarial contracts prescribe after six years. Mortgage bond debts, judgment debts, and certain debts owed to the state prescribe after thirty years. Some statutes impose their own special time limits.

When does prescription start running on a claim?

Prescription starts when the debt becomes due and the creditor knows, or reasonably could have known, the identity of the debtor and the facts giving rise to the claim. You do not need to understand the legal position, only the essential facts needed to institute action.

Does a letter of demand stop prescription?

No, a letter of demand does not interrupt prescription on its own. Only the service of legal process, such as a summons, or an acknowledgement of liability by the debtor, such as a part payment or written promise to pay, resets the prescription clock. Send demands early, then sue in time.

Can I still claim against my builder for structural defects after three years?

Possibly, yes. The Supreme Court of Appeal held in July 2026 that a damages claim for breach of a builder's statutory warranty only becomes due once the builder fails or refuses to repair after a reasonable opportunity, not when you first discover the defects. Each case depends on its own timeline.

What happens if I pay a debt that has already prescribed?

You generally cannot recover the money. A prescribed debt is extinguished, but payment made afterwards is treated as payment of a natural obligation, so it cannot be reclaimed. Before paying an old debt, especially to debt collectors, first obtain advice on whether the debt has prescribed.

Speak to Us Before Time Runs Out

If someone owes you money, or you are facing a claim you believe has prescribed, do not guess your deadline. Bregman Moodley Attorneys has been taking the sting out of legal problems since 1974, and we will assess your position quickly and candidly.

Call us today on +27 (0)11 646 0335, email roy@bmalaw.co.za, or visit bregmans.co.za to book a consultation. One phone call now can save a claim worth millions later.

 

Can You Get Divorced in South Africa If You Live Overseas?

 

Written by Roy Bregman, admitted attorney with over 51 years’ experience in family law and divorce. Last updated: 30 July 2026.

Key Takeaways •     A South African court can only hear your divorce if at least one spouse is domiciled in South Africa or has been ordinarily resident here for at least one year before the case starts. •     South African citizenship, being born here, or getting married here does not give our courts jurisdiction. •     A clause in your antenuptial contract choosing South Africa as the divorce forum cannot create jurisdiction, but the contract itself still matters in a foreign divorce. •     If you both live abroad, you will usually have to divorce where you live, and your South African antenuptial contract should be placed before that foreign court.

A question we were recently asked

A client wrote to us with this question, which we share with his permission and with names removed: “Could we divorce in South Africa? My wife is a South African national who moved to the UK in 2006 and then to Ireland in 2009, and she has lived there ever since. I think she would be considered South African domiciled because she was born to South African parents and raised here until the age of 26. I am a UK national. We married in South Africa, and our antenuptial contract says that any divorce proceedings should be in South Africa.”

The short answer, perhaps surprisingly, is no. On these facts a South African divorce is not possible, and the clause in the antenuptial contract does not change that. This article explains why, what the courts have recently said, and what couples in this position should do instead.

When do South African courts have jurisdiction to hear a divorce?

A South African court can only hear a divorce if, on the day the case is started, at least one of the spouses is either domiciled in the court’s area, or ordinarily resident in that area and has lived in South Africa for at least one year immediately beforehand. This rule comes from section 2(1) of the Divorce Act 70 of 1979. “Jurisdiction” simply means the legal power of a court to hear and decide a case. If neither spouse meets one of these two tests, no South African court may grant the divorce, no matter how strong the couple’s ties to this country may feel.

What does “domicile” mean?

Domicile is the country a person treats as their permanent legal home. Everyone starts life with a “domicile of origin”, usually the country where their parents were settled when they were born. Under the Domicile Act 3 of 1992, an adult acquires a new “domicile of choice” the moment they are lawfully present in another country with the intention of settling there for an indefinite period. Once a new domicile is acquired, the old one falls away. The old common law rule, under which a person’s domicile of origin automatically revived, no longer applies.

This is where our client’s assumption went wrong. His wife’s birth and upbringing in South Africa fixed where her domicile began, not where it is today. After seventeen years of settled life in Ireland, she has almost certainly acquired an Irish domicile of choice and lost her South African one.

What does “ordinarily resident” mean?

Ordinary residence means the place where a person actually lives their day-to-day life, their usual home as a matter of fact. A spouse relying on this ground must also show one full year of residence in South Africa immediately before starting the divorce. A couple who both live overseas cannot satisfy this test at all, so for expatriate couples everything usually turns on domicile.

Does South African citizenship let you divorce in South Africa?

No. Nationality plays no role in divorce jurisdiction. A South African passport, a South African birth certificate and a South African wedding all count for nothing under section 2(1) of the Divorce Act. This surprises many expatriates, but the courts have applied the rule strictly, because divorce concerns a person’s legal status and the legislature has decided exactly which connections to this country are close enough.

Can an antenuptial contract choose South Africa as the divorce court?

No, a forum clause in an antenuptial contract cannot create jurisdiction that the Divorce Act does not give. An antenuptial contract, often called an ANC, is the agreement spouses sign before marriage to regulate their property. Jurisdiction in matters of status is conferred by statute, not by private agreement, so spouses cannot contract their way into a South African divorce court.

That does not make the contract worthless, far from it. The property consequences of a marriage are governed by the law of the husband’s domicile at the date of the marriage, a rule the lawyers call the lex domicilii matrimonii, which simply means “the law of the matrimonial home”. The Supreme Court of Appeal confirmed this approach in Lenferna v Lenferna [2013] ZASCA 204, where a couple married in Mauritius were held to that country’s property regime even though they later lived and divorced in South Africa. The same logic works in reverse: a foreign court dealing with your divorce will have regard to your South African antenuptial contract.

Your situation at a glance

Connection to SA	Does it give SA courts jurisdiction?	Why
Domicile of a spouse	Yes	Section 2(1)(a) of the Divorce Act, tested on the day the case starts
One year’s ordinary residence	Yes	Section 2(1)(b), residence must be in SA for the full year before the case
SA citizenship or birth	No	Nationality is not a ground under the Act
Married in South Africa	No	The place of the wedding is irrelevant to divorce jurisdiction
ANC clause choosing SA	No	Status jurisdiction comes from statute, not agreement, but the ANC still governs your property

 

What have the courts said recently?

In M.S.S v R.A [2025] ZAWCHC 517, a wife issued divorce summons in Cape Town after the family had moved to the Netherlands in January 2025. The husband raised a special plea, which is a technical defence taken before the merits, arguing that everyone was now domiciled in the Netherlands. The Western Cape High Court examined the facts closely and held that the wife had never formed the intention to settle in the Netherlands indefinitely, so she retained her domicile of origin in the Western Cape and the court had jurisdiction. The case shows that a recent or half-hearted emigration may leave a South African domicile intact, while a long-settled one, like seventeen years in Ireland, will not.

In H.G.W v M.W [2025] ZAWCHC 140, the Western Cape High Court, sitting on appeal, upheld a husband’s challenge to a divorce issued in the Mossel Bay Regional Court. The wife had returned from Australia only days before issuing summons and had neither properly pleaded nor proved that she was domiciled in that court’s area. The court confirmed that the spouse who sues must allege and prove domicile or residence, and that a court cannot simply assume jurisdiction.

The earlier decision in O.B v L.B.D.S 2021 (6) SA 215 (WCC) makes the same point starkly. A wife who had left for Russia could produce, in the court’s words, not a stitch of evidence of domicile or a year’s residence, and her divorce action failed for lack of jurisdiction. Together these cases confirm that jurisdiction is a threshold question of fact and law, decided on evidence, not on sentiment or citizenship.

Where should you divorce if you both live abroad?

You will generally have to divorce in the country where jurisdiction actually exists, which for most expatriate couples means the country of habitual residence. In our client’s case that is realistically Ireland, where his wife has lived since 2009, or England and Wales if he is habitually resident or domiciled there. The good news is that section 13 of the Divorce Act obliges South African courts to recognise a foreign divorce if, on the date of the order, either spouse was domiciled, ordinarily resident or a national of that foreign country. A properly obtained Irish or English divorce is therefore fully effective in South Africa.

Your South African antenuptial contract should travel with you. English courts will generally hold spouses to a nuptial agreement freely entered into with a full appreciation of its implications, unless it would be unfair to do so, while Irish courts are not bound by such agreements but may take them into account. In both countries, a certified copy of the ANC and an expert opinion on South African matrimonial property law can make a real difference to the outcome.

What should you do next? A practical checklist

First, work out each spouse’s domicile and habitual residence honestly, because that determines the forum. Second, obtain a certified copy of your antenuptial contract from the Deeds Office if you no longer have the original. Third, take advice in the country where the divorce will run, through Irish or English solicitors or their local equivalent. Fourth, brief a South African attorney to prepare an expert opinion on your matrimonial property regime for the foreign court. Fifth, deal separately with any South African assets, such as immovable property, retirement funds or trusts, which may need local steps to transfer after the divorce. Sixth, update your South African will, because divorce affects existing bequests to a former spouse.

Conclusion

South African courts guard their divorce jurisdiction carefully, and the tests are domicile and ordinary residence, nothing else. Citizenship, birth, a South African wedding and even a forum clause in an antenuptial contract cannot open the door. For couples settled overseas, the realistic route is a divorce where they live, supported by their South African antenuptial contract and proper cross-border legal advice. Handled correctly, the foreign divorce will be recognised here and your South African affairs can be wound up cleanly.

Frequently Asked Questions

Can I get divorced in South Africa if I live overseas?

Only if you or your spouse is still domiciled in South Africa, or one of you has been ordinarily resident here for at least a year before the case starts. If you are both settled abroad, South African courts have no jurisdiction, and you must divorce where you live.

Does being a South African citizen mean I can divorce in South Africa?

No. Citizenship is not a ground of divorce jurisdiction under section 2(1) of the Divorce Act 70 of 1979. What matters is domicile or a year’s ordinary residence in South Africa. Many expatriates are caught out by this, so check your position before issuing summons.

Can our antenuptial contract choose South Africa as the divorce court?

No. Divorce concerns legal status, and jurisdiction over status is conferred by statute, not by private agreement. A forum clause in an antenuptial contract cannot create jurisdiction that the Divorce Act does not give, although the contract itself remains relevant to how your property is divided.

Will a foreign divorce be recognised in South Africa?

Yes, in most cases. Section 13 of the Divorce Act requires recognition if, when the foreign order was granted, either spouse was domiciled in, ordinarily resident in, or a national of that country. A valid Irish or English divorce is therefore effective in South Africa without further court proceedings.

Does our South African antenuptial contract still apply if we divorce overseas?

Yes. Your matrimonial property regime was fixed under South African law when you married, and a foreign court will have regard to your antenuptial contract. English courts generally uphold freely concluded nuptial agreements, and Irish courts may take them into account, so place the ANC before the foreign court.

Speak to us before you take the first step

Cross-border divorce is unforgiving of early mistakes, and issuing summons in the wrong country can cost you months and a great deal of money. Bregman Moodley Attorneys has been taking the sting out of legal problems since 1974, and we regularly assist expatriate couples with jurisdiction opinions, certified antenuptial contracts, expert reports for foreign courts and the winding up of South African assets. Call us on +27 (0)11 646 0335, email roy@bmalaw.co.za, or visit bregmans.co.za. We return every enquiry within 24 hours, and we always follow up in person.

Can I List a Debtor as a Bad Payer With the Credit Bureaus?

 

Yes. If someone owes your business money and will not pay, you can report that default to the credit bureaus, which places a black mark on the debtor's credit record. This is often faster, cheaper and more effective than suing, because a poor credit record makes it hard for the debtor to buy on credit, rent premises, obtain finance or, in some cases, get a job. For many debtors, the threat of a listing achieves what a letter of demand never will.

There is a right way and a wrong way to do this. Get it wrong, and the listing can be removed on a technicality, or worse, you can be sued for damages for a wrongful listing. This article explains the rules, the recent law, and the exact steps to follow so that your listing sticks.

Key Takeaways

●       You can list a defaulting debtor with the credit bureaus, and the threat of a listing is often a cheaper and quicker route to payment than litigation. ●       Before listing a default, you must give the debtor at least 20 business days' written notice of your intention to do so. If they pay or dispute the debt in that window, you cannot list. ●       Different listings last for different periods, from one year for a default to five years for a court judgment. Prescribed (very old) debt cannot be listed at all. ●       A wrong or careless listing can be defamatory and expose you to a damages claim, so accuracy and correct procedure matter.

Why Is Listing a Debtor Cheaper Than Suing?

Because a listing costs you almost nothing, while it costs the debtor a great deal. Litigation is slow and expensive. You pay legal fees, you wait months or years for a court date, and even after you win, you still have to enforce the judgment against a debtor who may have no attachable assets. A credit listing sidesteps much of that.

A listing works by hitting the debtor where it hurts, namely their access to credit. Once a default appears on their record, banks, retailers, landlords and suppliers can all see it, and most will refuse to extend credit or enter into a contract. For a debtor who depends on credit to run a household or a business, that pressure is often enough to produce payment, or at least a genuine offer to settle, without a single court appearance.

It is important to be clear about what a listing is, and what it is not. It is not a way of recovering the debt itself, and it does not replace your right to sue. The debtor still owes the money, and you may still have to litigate to actually collect it. What the listing does is create leverage. Used correctly, it brings a recalcitrant debtor, meaning one who stubbornly refuses to pay, to the table.

What Law Governs Credit Bureau Listings in South Africa?

Credit bureau listings are governed by the National Credit Act 34 of 2005, known as the NCA, and its regulations. The NCA sets out who may submit information, what notice must be given first, how long different listings may remain, and how a consumer may dispute a listing they say is wrong.

The bureaus themselves are regulated businesses. There are several registered credit bureaus in South Africa, the main ones being TransUnion, Experian, Compuscan and XDS. When you submit a default, it can appear on the records held by one or more of them, and from there it is visible to anyone who checks the debtor's credit report.

One point of terminology. People often talk about being blacklisted, but there is no single blacklist. What actually happens is that specific information about the debtor's conduct, such as a default or a court judgment, is added to their credit profile. The law regulates each type of information separately, which is why the rules and the retention periods differ depending on what you are listing.

What Types of Listings Are There, and How Long Do They Last?

Different categories of information carry different rules and remain on the record for different periods. The table below sets out the main types relevant to a business chasing a debt, drawn from Regulation 17 of the NCA and the National Credit Regulator's guidance.

Type of listing	What it means	How long it stays / notice required
Default (adverse classification of behaviour)	A classification such as “default”, “slow paying” or “absconded”, based on how the debtor has paid.	One year. Requires 20 business days' prior written notice before listing.
Enforcement action	A classification such as “handed over”, “legal action” or “written off”, reflecting steps taken after default.	Commonly displayed for up to two years. Prior notice applies.
Civil court judgment	A judgment granted by a court against the debtor for the unpaid debt.	Five years, or until rescinded by a court or paid in full. No 20-day notice needed.
Payment profile	The month-by-month record of how the debtor has paid a particular account.	Five years. This is account information, so the 20-day notice does not apply.

 

Two practical points follow from this table. First, a plain default listing lasts only one year, so it is a pressure tool rather than a permanent punishment. Second, a court judgment is far more powerful, lasting five years and needing no advance notice, which is one reason a judgment is worth obtaining even when the immediate goal is leverage rather than execution.

What Notice Must I Give Before Listing a Default?

You must give the debtor at least 20 business days' written notice of your intention to list the default, before you submit it to a bureau. This requirement comes from Regulation 19(4) of the NCA, read with the debtor's right under section 72(1) to be told before adverse information about them is reported. Skipping this step is the single most common reason a listing is later removed.

How the notice must be given

The notice must be in writing and must be sent to the debtor, typically by registered post or by email. The onus is on you, as the party doing the listing, to prove that the debtor received it. Keep proof of dispatch and, where possible, proof of delivery, because if the debtor later disputes the listing and you cannot produce the notice, the bureau will remove it.

What happens during the 20 days

During the notice period the debtor has a chance to act, and two things can stop the listing. If the debtor pays the arrears within the 20 business days, you may not list the default. Equally, if the debtor disputes that they owe the money within that period, you may not list it while the dispute stands. The listing is only for genuine, undisputed defaults that remain unpaid after fair warning.

When no notice is needed

You do not have to give this 20-day notice before listing a court judgment. Once a court has granted judgment against the debtor, that judgment is a matter of public record and can be listed without further warning. The notice requirement is aimed at default listings, not judgments, which is another reason the judgment route is attractive where you have one.

What Have the Courts Said About Credit Listings?

The courts take both sides of this seriously. They will uphold a properly made listing, but they will also punish a careless or false one, because a wrong listing can destroy a person's or a business's financial reputation. Two decisions illustrate the risks on each side.

Van Rooyen v Vodacom (2011): the danger of a wrong listing

In Van Rooyen v Vodacom Service Provider Company Ltd (Pty) (3652/2010) [2011] ZAECPEHC 14, a senior advocate was listed with a credit bureau as having been “hanged over” for a debt. He said no such amount was properly due. As a result of the listing his bank refused to extend the overdraft he needed for his practice and his property business. He sued for damages, arguing that the listing was wrongful and defamatory because it told the world that he did not pay his debts. The court accepted that a false credit listing can be defamatory and can found a claim for damages. The lesson for any business is blunt. If you list a debtor carelessly or incorrectly, you can end up paying them.

Uys NO v National Credit Regulator (2025): the NCA has teeth

More recently, in Uys NO and Others v National Credit Regulator (869/2023) [2025] ZASCA 34, the Supreme Court of Appeal confirmed that transactions dressed up to avoid the NCA will still be treated as credit agreements caught by the Act, and that credit granted recklessly can be declared reckless, with penalties following. While that case was about reckless lending rather than listing, it shows the current judicial approach, namely that the NCA is applied robustly and according to its true purpose. A business that ignores the NCA's requirements, whether when granting credit or when listing a default, cannot expect the courts to overlook it.

How Do I List a Debtor Correctly, Step by Step?

Follow the sequence below and your listing will be defensible. Skip a step, and you risk removal or a damages claim.

Step 1: Confirm the debt is real, due and not prescribed. Make sure the amount is genuinely owed, that it is payable now, and that it has not prescribed. As a general rule, an ordinary unsecured debt with no judgment prescribes, meaning it becomes unenforceable, after three years. Prescribed debt may not be listed.

Step 2: Keep your paperwork in order. Gather the agreement, invoices, statements and any correspondence showing the debt and the default. You may need to produce this if the debtor disputes the listing.

Step 3: Send the 20 business day notice. Send the debtor written notice of your intention to list the default, by registered post or email, and keep proof. State the amount, the account, and that the default will be listed if it is not paid within 20 business days.

Step 4: Wait out the notice period. If the debtor pays the arrears or genuinely disputes the debt within the 20 days, do not list. If the period passes with no payment and no genuine dispute, you may proceed.

Step 5: Submit accurate information to the bureau. List only what is true and current. The information must be accurate, up to date, complete and not duplicated. An inaccurate listing is both removable and potentially defamatory.

Step 6: Update the listing when things change. If the debtor later pays, you must tell the bureau to update the record, usually within seven days of settlement. Leaving a paid debt listed as unpaid is itself a wrong listing.

Step 7: Consider judgment for a stronger, longer listing. Where leverage alone does not work, obtaining a court judgment gives you a listing that lasts five years and needs no notice, and it preserves your right to execute against the debtor's assets.

Conclusion

Listing a debtor as a bad payer is one of the most effective and least expensive tools available to a creditor, precisely because it turns the debtor's own need for credit into your leverage. The catch is that the National Credit Act sets clear rules, and the courts enforce them in both directions. Give the correct notice, list only accurate and undisputed debt, update the record when the position changes, and the listing will do its work. Cut corners, and you risk not only losing the listing but paying damages for it. Used properly, a credit listing will often persuade a stubborn debtor to pay long before a summons ever would.

Frequently Asked Questions

Can I list a debtor as a bad payer with the credit bureaus?

Yes. If a debtor has defaulted on a genuine, undisputed debt, you can report that default to the credit bureaus after giving the required notice. The listing appears on the debtor's credit report and harms their access to credit. It is often a faster and cheaper route to payment than suing, though it does not by itself recover the money owed.

How much notice must I give before listing a default?

At least 20 business days' written notice of your intention to list. This comes from Regulation 19(4) of the National Credit Act, read with the debtor's right to be told before adverse information is reported. If the debtor pays the arrears or disputes the debt within that period, you may not proceed with the listing.

How long does a bad payer listing stay on a credit record?

It depends on the type. A default classification stays for about one year, enforcement action classifications commonly for up to two years, and a civil court judgment for five years or until it is rescinded or paid in full. Once a debt is settled, you must have the record updated, usually within seven days.

Can I be sued for wrongly listing a debtor?

Yes. A false or careless credit listing can be defamatory, because it tells others the person does not pay their debts. Our courts have accepted that a wrongful listing can found a claim for damages. That is why you must list only accurate, due and undisputed debt, follow the correct notice procedure, and keep your supporting paperwork.

Can I list a debt that is very old?

No, if the debt has prescribed. As a general rule an ordinary unsecured debt, with no court judgment and no acknowledgement or payment, prescribes after three years and becomes unenforceable. Prescribed debt may not be listed with the credit bureaus, and listing it can expose you to a dispute and to liability.

Recover What You Are Owed, Without the Cost of a Trial

If a debtor is refusing to pay, a properly handled credit listing may get you paid faster than litigation, and for a fraction of the cost. We can advise you on whether the debt qualifies, draft the required notice, ensure the listing is defensible, and pursue judgment where leverage alone is not enough. With over 51 years in practice, we know how to apply pressure lawfully and effectively.

Contact Bregman Moodley Attorneys Telephone: +27 (0)11 646 0335 Email: roy@bmalaw.co.za Website: www.bregmans.co.za