With all the talk about debt and process, do you know what happens to prescribed debt? An interesting topic, something fairly unknown to most credit users, prescribed debt is written off.
With time frames varying from account type to account type, some being three years and others 30, prescribed debt is old debt that is canceled to halt excessive interest gained over years. A concept developed to protect the consumer from unscrupulous lenders, a debt becomes prescribed when through fault of the creditor, the account is left unclaimed. If there has been no contact, usually within three years, then the debt is written off and cannot be claimed by creditors.
While not without its fine print, this debt can still become valid if the debtor acknowledges it. A very simple outline that can be used to catch debtors unaware, even saying you know which debt the creditor or collector refers to can make it valid once again, no matter the time frame that has passed.
This not only ensures that creditors are on top of their debtors, but also ensures that ridiculous interest cannot be accumulated when the creditor has not fulfilled their job role properly and chased up the debt in good time.