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3 Year Prescription of Debt


Re: 3 Year Prescription of Debt

Wrong forum.... but I hope you feel better now....

SLNB LMX501| Explora 2A (Primary 4,5,6) Explora 2A (Secondary 0,1,2) | Xtraview - decoders same room | 3 distributed HDMI endpoints via 2x4 Matrix
and Cat6 | 200/100 Fibre (OpenServe/Afrihost Premium UnCapped) | HD 5S in holiday mode

3 Year Prescription of Debt

The Prescription Act provides that where no payment has been made for a period of 3 years, the debt has “prescribed”.

This means that the debt has been completely distinguished and does not have to be paid.

Please remove all debt from customers' accounts who have not paid anything in the last 3 years.

The Prescription Act is law.

If someone has paid nothing in the last 3 years, then they are never going to pay.

So get rid of that debt. 

Don't waste time and money trying to contact the people who owe R200 and have not paid anything in 5 years. It is a useless pursuit.

It costs 100 times more to employ staff, make a phone calls and post a letters than what the debt is worth. 

Millions of Rands in debt can be sitting on the Financial Statements and Balance Sheet as an Asset, but that debt asset is false and a lie, misleading Naspers investors because that money will never be collected. 

It violates International Financial Reporting Standards (IFRS) to not write off un-collectable debt.

You cannot keep that money on the books and financial statements as an asset for the next 1000 years if it is never going to be paid.

The people will die, but their debt is kept on the system for eternity because you don't know that they are dead? Instead just wait for them to pay?

Keeping all that un-collectable debt as an asset on the books to make the company look like it is worth a lot more. That is called criminal fraud. 

I know 2 accounts where the last payment was more than 3 years ago and the debt has not been removed.

One account is a dead person, but the debt is being still kept on the system for the next one thousand years. 

If all the 3 year old debt is not removed, I will escalate this breach of the Prescription Act with whistle blowing procedures and also to Naspers' auditors, PWC. 

Please do not ignore this message.

It will look bad in performance reviews to ignore this message and to ignore an issue which has huge financial repercussions when all the old debt is written off all at once because it was being ignored for decades.  

Be pro-active and do something before the auditors and accountants arrive. 

No attempt is being made to collect the debt.

The costs are too high to collect small amounts of debt. It is not worth trying to collect R1000. Just remove that debt from the system.

The Prescription Act has been in existence since 1969, so surely you should have policies for dealing with very old unpaid debt?

A call centre agent told me that debt is never written off, which sounds like there is no company policy to deal with debt and that nothing is done about debt, and debt is just left on the system forever until the end of all life on earth. 

DSTV is a pre-paid service where someone has to pay for the month in advance to get the decoder to work, so there shouldn't be large debt on each customer's account.

Not more than one month's subscription should exist as debt for each customer, unless there was some type of system error that caused a customer's debt to pile up. 

When the month's payment is not received, the decoder is turned off and further debt is not accumulated. 

Unless there is a 2 year R23 000 "price-lock" contract, but in the end the lawyers get almost all the money if any debt is collected, achieving nothing except enriching the dishonest lawyer snakes. Lawyers will charm you with endless lies, making you think that everything is amazing, in the end just costing millions and walking away with all the money.