Refusing to accept payment 27 February 2015 at 1:26PM in Debt-free wannabe 10 replies 1.7K views

mrwallacewallace

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

sourcrates

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.

mrwallacewallace

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.

Marktheshark

Explain the debt, what its for and how its owed.
They may be a "loophole"

mrwallacewallace

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

sourcrates

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.

glentoran99

mrwallacewallace wrote: »

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

Million_Percent

glentoran99 wrote: »

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.

mrwallacewallace

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.

sourcrates

mrwallacewallace wrote: »

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 😁

mrwallacewallace

The debt was definitely owed it was some interest that was disputed, anyway paid and she can now start repairing the credit score :dance: