Nedbank COBs Reflect Prescription

Nedbank Adjust CoBs

If a debt is old and has not been collected on for several years it can actually disappear or prescribe. This means that since the creditor was not prepared to try collect the money the law says it is now written off. For a credit provider to try collect any prescribed debt is illegal and can result in prosecution. They can’t even sell it to another firm of debt collectors if it is “prescribed”.

Court Matters

Many courts dealing with debt review matters want to know if any of the debts involved may have prescribed prior to the debt review starting. Naturally if they had, the Debt Counsellor would not include them but many Magistrates want to make sure.

Nedbank

Nedbank have taken steps to address this matter by including in their certificates of balance a section which indicates if any accounts have prescribed. This will help make it obvious to anyone looking at these forms if the account has prescribed and should not be included. (See low res example)

For any matters before the change to their CoB Nedbank have kindly offered to submit an affidavit or letter of confirmation to help at court. Such letters or affidavits can be obtained by emailing: Debtcounsellingqueries@nedbank.co.za.