Cashing of Payments

MoneyOne

Hi,

I owe money to a company, and have sent them a small amount (£4.42) which I calculate as their pro-rata share among my other debts, I have alerady sent them a breakdown of my disposable income.

The creditor in question has returned my cheque! with a note saying 'This is not accepted by us'.

Are they under a legal obligation to cash this? And if so, what can I quote to them when I return the cheque?

Many thanks.

Welshdebtor

They legally do not have to accept anything, however by making you pay more than you can afford they are breaking certain guidelines (think I am right in saying that).
However if you keep trying to pay, and they keep refusing, then if this went to court, any judge would ask your creditor why they keep refusing, plus you can show you tried.

They may have returned it, hoping you would go "oh ok I better send more" and send them a higher amount.
If you write again enclosing the same cheque, saying you are disppointed that they refused it, especially as your other creditors accepted your offer. Your amount is based on a pro-rata share, if you were to increase their amount it would result in a reduction to the others which is unfair.

MoneyOne

Welshdebtor wrote: »

They legally do not have to accept anything, however by making you pay more than you can afford they are breaking certain guidelines (think I am right in saying that).
However if you keep trying to pay, and they keep refusing, then if this went to court, any judge would ask your creditor why they keep refusing, plus you can show you tried.

They may have returned it, hoping you would go "oh ok I better send more" and send them a higher amount.
If you write again enclosing the same cheque, saying you are disppointed that they refused it, especially as your other creditors accepted your offer. Your amount is based on a pro-rata share, if you were to increase their amount it would result in a reduction to the others which is unfair.

Thanks welshdebtor - I shall be resending with a note!

Welshdebtor

There is templates on here that may be of use, look in the templates threads

MoneyOne

Welshdebtor wrote: »

There is templates on here that may be of use, look in the templates threads

WIll do, thanks for the tips!

GeorgeUK

I agree - keep hold of any letters they send back stating that the payment is not accepted. I wouldn't bother writing a new letter to them until the next payment is due though.