Refusing to accept payment

Hi, Can a debt collection company legally refuse my offer of payment in full. It's my wife's debt of 1300 I want pay it in full with a credit card but they have refused to accept payment from her? Any Advice much appreciated many thanks

Replies

  • sourcratessourcrates Forumite
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    Yes, They won't accept any payment by credit card.

    That's just passing the debt to another company, and they are not allowed to do this.

    You have to pay by debt card, or cash/ cheque, then the debt is settled.
    Ex MSE Board Guide.

    More than a third of IVA`s fail....fact.
    Could A Debt Relief Order help you ?
    Never pay a fee for a Debt Management Plan.
    For free non-judgemental debt advice, contact either : Stepchange, National Debtline, or CitizensAdviceBureaux.
  • Thanks,
    But is there any legal reason or actual law that entitles them to refuse an offer to pay in full. I am a third party willing to pay the debt in full the method of payment I use surely should not matter.
  • Explain the debt, what its for and how its owed.
    They may be a "loophole"
    I do Contracts, all day every day.
  • The debt was a disputed credit card of my wife's she was advised citizens advice to stop paying it so it went to a debt collection agency the interest was stopped and she paid a monthly payment each month, with hindsight she would have just paid it. Anyway it is now £1300 and I have her my card to pay it they have refused to accept payment by card. I have no problem paying the debt in full. I am just about to phone them to try myself so I a need to know if this is legal is there something I can quote etc does this put them in breach of there trading association laws if they refuse to accept payment in full I need some ammo
  • edited 27 February 2015 at 4:02PM
    sourcratessourcrates Forumite
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    edited 27 February 2015 at 4:02PM
    Wow Wow Wow, hold ya horses,

    Please never ring a DCA, always do everything in writing.

    if the debt is disputed, then why would you want to pay it ?

    Sending them the provit letter would be a lot better way to proceed.

    They have to prove a debt is owed, not the other way round.

    If you have a genuine dispute, follow it through, all the way to the FOS.
    Ex MSE Board Guide.

    More than a third of IVA`s fail....fact.
    Could A Debt Relief Order help you ?
    Never pay a fee for a Debt Management Plan.
    For free non-judgemental debt advice, contact either : Stepchange, National Debtline, or CitizensAdviceBureaux.
  • glentoran99glentoran99 Forumite
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    Thanks,
    But is there any legal reason or actual law that entitles them to refuse an offer to pay in full. I am a third party willing to pay the debt in full the method of payment I use surely should not matter.

    the only method they arent allowed to refuse is cash, they are within their rights to refuse all other forms of payment
  • edited 27 February 2015 at 4:30PM
    Million_PercentMillion_Percent Forumite
    188 Posts
    edited 27 February 2015 at 4:30PM
    the only method they arent allowed to refuse is cash, they are within their rights to refuse all other forms of payment

    This is where the often misused term 'legal tender' comes in to play. Legal tender refers to means of payment recognised by law that a creditor cannot refuse as payment of a debt. You are correct that cash is the only form of legal tender, however certain coins can only be used up to a certain total value. For example copper coins are only legal tender up to a total of 20p. A creditor could refuse payment of a debt of 21p if the payment was presented in 1p coins but cannot refuse payment of a 20p debt in 1p coins.

    http://www.royalmint.com/aboutus/policies-and-guidelines/legal-tender-guidelines

    Legal tender only applies in the settlement of existing debt. There is a common misconception that if you offer a retailer legal tender at point of purchase that they cannot refuse it. This is incorrect. In this situation the method of payment is to be agreed between the retailer and customer. The retailer is free to decline any method of payment.
  • Hi all, just to update they did accept my offer of payment in full by credit card after first refusing my wife I spoke with them they initially refused so I requested they send me in writing a full and concise reason for refusing my payment they then backed off she put me through to her manger who did not want to escalate it and agreed to accept my payment. As I thought after checking with there finance authority there is no legal recourse that allows them to refuse payment in no matter method is used.
  • sourcratessourcrates Forumite
    26.3K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Forumite
    Hi all, just to update they did accept my offer of payment in full by credit card after first refusing my wife I spoke with them they initially refused so I requested they send me in writing a full and concise reason for refusing my payment they then backed off she put me through to her manger who did not want to escalate it and agreed to accept my payment. As I thought after checking with there finance authority there is no legal recourse that allows them to refuse payment in no matter method is used.

    So you've payed a debt she may not even of owed, oh dear 😁
    Ex MSE Board Guide.

    More than a third of IVA`s fail....fact.
    Could A Debt Relief Order help you ?
    Never pay a fee for a Debt Management Plan.
    For free non-judgemental debt advice, contact either : Stepchange, National Debtline, or CitizensAdviceBureaux.
  • The debt was definitely owed it was some interest that was disputed, anyway paid and she can now start repairing the credit score :dance:
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