The President confirmed the commencement of the National Credit Amendment Act 19 of 2014 (“NCAA”) in terms of the gazetted proclamation on 13 March 2015.

Of particular relevance is that the NCAA has introduced section 126B to the National Credit Act 34 of 2005 (“NCA”), which provides that where the NCA applies to a credit agreement, no person may:

  • sell a debt in terms of that credit agreement if the debt has prescribed; and
  • collect or re-activate a debt if the debt has prescribed.

The aforementioned inclusions to the NCA will have a significant impact on credit providers, debt collectors and attorneys who are involved in this area. The onus has shifted from the consumer having to raise prescription as a defence to the credit provider having to calculate debt prescription dates to ensure that the debt has not been extinguished before collecting or selling that debt.