Easy on Demanding prescribed debt (FNB)

So i was applying for FNB homeloan, which was declined because 10 years ago i took a Direct Axis personal loan for R 20 000, which I did not pay it off. i lost my job and was not able to pay it off. This misfortune was communicated to Direct Axis (DA). DA kept balooning the debt with interest for a period of six months and then sold it to a 3rd party. The third party kept adding thier own charges until three years has passed and no summons or judgement was ever issued. Now according to the law, that debt is prescribed and the creditor is forbidden from seeking collection of that debt...hence it does not even appear in my credit profile.

Now FNB is using its powers to basically force me to repay the debt. So I take my salary out of FNB and transfer it to Capitec. Three months later i receive a R 2.5 million home loan from Capitec..with total repayments totaling to R 4.6 million in 20 years. This is the business that should have came to FNB.

I cannot see what benefit is to you to seek your client to pay prescribed debt, but it might be working against you.

Thank you very much