Debt collectors are still sending SMSs and letters demanding payments for accounts from years ago, often threatening blacklisting or service cut-offs. Many consumers panic and pay small amounts just to “make a plan.” But in Namibia, not all debts can be enforced forever — and making a payment can revive a prescribed (i.e. expired) debt.
Here’s how the law works (as of 2025), what has changed, and how you can defend yourself.
1. The Legal Basis: Prescription of Debt in Namibia
The Prescription Act 68 of 1969
In Namibia, the Prescription Act 68 of 1969 governs how debts become “extinct” (i.e. unenforceable) after a certain period.
Section 10 of the Act provides that debts are extinguished by prescription if not claimed within the prescribed time.
The usual three-year period applies for most debts arising from a contract or a typical consumer obligation.
Some other kinds of debts (e.g. secured debts or judgments) may carry longer prescription periods (e.g. 30 years) under certain circumstances.
When Prescription Starts & What Can Interrupt It
Prescription begins to run from the date the debt becomes due (or from the last date when the debtor was aware).
If the debtor acknowledges liability (e.g. by paying, or promising to pay), or if a judicial process (like a summons) is served, prescription is interrupted, and the period starts afresh.
However, merely sending a demand letter or SMS (without court authority) is not always sufficient to interrupt prescription. The process must satisfy legal requirements.
Courts in Namibia have entertained “special plea of prescription” motions — i.e. defendants ask that a court dismiss the claim on the basis that the debt has prescribed.
Judicial Precedents
The High Court in Windhoek has in multiple cases upheld that a plaintiff’s claim was prescribed under section 11(d) of the Prescription Act.
Also, courts have warned that a creditor must properly serve process to interrupt prescription, and failure to do so can cause lapse of the cause of action.
2. The Current Legal Environment & Gaps
Weak Regulation of Debt Collectors
Namibia currently lacks a comprehensive regulatory framework specifically for debt collection or “debt-management firms.” Many consumers fall prey to unregistered or unscrupulous firms.
However, a recent draft Consumer Credit Bill under NAMFISA (the financial regulatory body) is expected to incorporate regulation of debt collectors.
Consumer Protection in Policy, but Not Yet Full Law
Namibia has adopted a National Consumer Protection Policy (2020), which aims to guide the development of consumer protection laws and regulate unfair consumer practices.
But as of now, there is no single strong Consumer Protection Act that specifically limits abusive collection behavior, unlike in some other jurisdictions.
This means many protections depend on general legal principles (e.g. contract law, common law, constitutional rights) and on raising defences like prescription in court.
Credit Bureaus & Data Sharing
Under existing statutes, credit bureaus are regulated, and rules exist regarding what information they may collect or share.
Importantly, a person may not be registered as a credit bureau if they also operate as a credit provider or debt collection agency — a measure to avoid conflict of interest.
3. What Happens When a Debt Collector Contacts You
When you receive any demand — SMS, phone call, letter — here is what to do, step by step:
Step A: Demand Proof
Ask them to prove the debt:
• What is the original creditor?
• What is the date of the debt (when it became due)?
• Attach statements showing last payment or lack thereof.
If they cannot show you solid proof, you can refuse to engage further.
Step B: Check Prescription
Examine whether three years or more have passed since the debt became due, and since any last payment or acknowledgement.
If the debt is older than three years, and there is no valid interruption, the debt is likely prescribed and cannot be legally enforced.
Step C: Lodge a Registered Letter / Special Plea
You should send a registered (or certified) letter to the creditor or collection agency, stating that you consider the debt prescribed under the Prescription Act, and formally refusing further payments.
If they go to court, you (through your lawyer or in person if allowed) should raise a “special plea of prescription”— a legal defence asking the court to dismiss their claim because it is time-barred.
You bear the burden of showing the timeline (dates of last payment, acknowledgment, etc.).
Step D: Do not make any payments
Never pay even N$1 if you believe the debt is prescribed — any partial payment can restart or revive the debt.
Do not agree to “payment plans” or “minimum payments” until you have confirmed the validity and non-prescription of the claim.
Step E: Monitor Legal Proceedings
If a summons or court documents arrive, do not ignore them — respond in court, stating your defence of prescription.
In your court filings, include detailed timeline evidence to show the debt is time-barred.
Step F: Report Misconduct (if applicable)
If a debt collector is using threats, intimidation, or false claims (e.g. “we will blacklist you tomorrow”), document this (screenshots, recordings, dates).
You may file a complaint either with Namfisa (once debt collectors fall under its purview) or the Ministry of Industrialisation & Trade / consumer protection office, referencing unfair practices.
