Overview
- Under Article 2001 of the Civil Code, bank debts become unenforceable after 10 years counted from default or from when a borrower appears as delinquent in SBS records.
- Prescription is not automatic, as debtors must petition a judge and obtain a ruling that declares the obligation extinguished.
- Equifax’s legal counsel notes that prescription does not erase credit history, with negative records potentially remaining in Infocorp for up to five years.
- The SBS provides a free online Debt Report that lets consumers review outstanding obligations and their current credit classification.
- Peruvian law limits wage garnishment to incomes above S/2,575 (five URP), lenders commonly sell overdue portfolios to collection firms, and many debtors forgo pursuing prescription due to cost and lack of information.