GK
BANKING AWARENESS AND SEBI
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
One year
|
|
|
Two years
|
|
|
Three years
|
|
|
Four years
|
Detailed explanation-1: -Time-barred debt is typically debt that has past the statute of limitations and cannot be collected. The statute of limitations for collecting credit card debt payments can range from three to 10 years, depending on the state.
Detailed explanation-2: -Prescribed debt refers to an old debt, in most cases around three-years-old, which the consumer is no longer liable to pay. This occurs when there has been no verbal or written acknowledgment of the debt in this period.
Detailed explanation-3: -The statute of limitation for recovery of debt was legislated within the Limitation Act 1963, which lays down the limitation periods in various cases and circumstances. For debt recovery, the statute of limitation is three years from the day the money was lent.
Detailed explanation-4: -If a debt is barred under statute, it means that by law (the Limitation Act), the lender has run out of time to use certain types of action to try and make you pay the debt. Statute-barred does not mean the debt no longer exists.