Debtfree Issue 202310 - DB
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CAR LOANS AND PRESCRIBED DEBT<br />
WHEN IT RAINS<br />
IT STORMS<br />
Many consumers have become<br />
aware that if you do not make<br />
payment on a debt nor acknowledge<br />
the debt with a credit provider for<br />
3 years, and they fail to sue you for<br />
the credit, the debt “prescribes”.<br />
This means that the debt can no longer be<br />
collected by the credit provider. The debt has<br />
died. They missed their window of opportunity<br />
to collect more funds from the consumer. The<br />
credit provider should have served a summons<br />
and gone to court during this time if they were<br />
serious.<br />
Some wonder how this applies to vehicle<br />
finance.<br />
While it is possible that the situation may<br />
come up (however unlikely) that the bank<br />
forgets to take the matter to court after so
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