Question

Overdue, Stale or Out-of-date Cheques
A cheque is overdue or becomes statute-barred after____ from its due date of issue.

• A. Six years
• B. Three years
• C. Six months
• D. Three months

Answer 1

Answer: (B)

Three years

If a debt is barred under statute, it means that by law 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. Moreover, to be an overdue or statute barred cheque, it has to complete 3 years from the date of its issue.