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Cars Returned to the Bank

Questions & AnswersCategory: Credit ProvidersCars Returned to the Bank
Charmaine asked 2 years ago

Hi

My husband and I had a business in 2000 we bought cars 2003 and the Quantum bus was repossessed in 2007.  We have never heard or been contacted since today 13 Jan 2017, by a lawyer and I was told that they are suing me and sending a sheriff to write up my stuff as well as put a garnishing order on my salary.

Please advise.

Thanks

1 Answers
Matthys Potgieter Staff answered 2 years ago

Hi there,

Thank you for your question.

There is a remedy to consumers called Prescription of Debt. What this means is that the debt “expires” after a certain number of years if there was no attempt to collect it or if there was no acknowledgement of debt. With 90% of debt types, prescription activates after three years. The National Credit Act states that it is illegal to collect on debt that has prescribed. In the past, prescription could be interrupted if the debtor acknowledges the debt. The Credit Act Amendments changed that and prohibits credit providers from collecting on prescribed debt.

We would advise that you talk to an attorney to write a letter to the credit providers and attorneys who are targeting you and claim the defence of prescription. Please make sure that the debt they are litigating for is, in fact, the old debt.

Hope this helps.