Nerdy Note Discussion: Scottish Bank Notes Aren’t Legal Tender...

luxor4t

Just to add confusion, Scotland has three issuing houses:
Royal bank of Scotland
Bank of Scotland
Clydesdale bank

My elderly MiL is scottish and used to have dreadful problems trying to pay with scottish £1 notes - usually because she had "forgotten" that the rest of the UK only had £1 coins. The notes seem to be out of circulation now as we have not had to help her understand for a while.

She still gets grumpy when her £5 + banknotes are queried, so OH encourages her to use the cashpoint here so that she has 'local' currency!

merikiito

There is no mention of Northern Ireland? Just England and Wales???
Are Northern Irish notes legal tender in England?

King_Of_Fools

merikiito wrote: »

There is no mention of Northern Ireland? Just England and Wales???
Are Northern Irish notes legal tender in England?

From http://www.bankofengland.co.uk/banknotes/about/faqs.htm#15

"Are Scottish & Northern Irish notes legal tender?

In short ‘No’ these notes are not legal tender; only Bank of England notes are legal tender but only in England and Wales.

The term legal tender does not in itself govern the acceptability of banknotes in transactions. Whether or not notes have legal tender status, their acceptability as a means of payment is essentially a matter for agreement between the parties involved. Legal tender has a very narrow technical meaning in relation to the settlement of debt. If a debtor pays in legal tender the exact amount he owes under the terms of a contract, he has good defence in law if he is subsequently sued for non-payment of the debt. In ordinary everyday transactions, the term ‘legal tender’ has very little practical application."

King_Of_Fools

ericthecat wrote: »

Met a someone at a party years ago, who worked for the Bank of England and told me exactly this - he said that the Scottish Banks take out a similar number of English notes and substitute them for their own. Don't know if this is still (or even ever) true.

From http://www.bankofengland.co.uk/banknotes/about/other_notes.htm

"Other British Islands' Notes

Within the United Kingdom, banknotes are also issued by three note-issuing banks in Scotland and by four in Northern Ireland.

These note issues have to be backed pound for pound by Bank of England notes. Owing to the combined size of these issues – well over a billion pounds – it would be cumbersome for the Bank to hold ordinary Bank of England notes as cover. Instead, special one million and one hundred million pound notes - known as Giants and Titans - are used. These notes are not for general circulation. Jersey, Guernsey and the Isle of Man are not part of the United Kingdom and are responsible for issuing their own notes."

JayW

"In ordinary everyday transactions, the term ‘legal tender’ has very little practical application."
This depends on who you're dealing with. Many years ago in the days of heavy pennies (pre-decimal) I asked a bus driver to accept 16 old pennies for 2 x 8d fares.He wouldn't take them on the grounds that he only had to accept 12 as legal tender. He did though - when I bought one 8d ticket and gave the other 8d to my friend to buy her own!

King_Of_Fools

secue wrote: »

To be honest I don't think you have really thought about what you are posting here MSE Lawrence. If this is true it may well be an interesting fact, however i seriously suggest you post your sources on this....many people are just taking your word for it, but how do you KNOW?

Show us the laws that say this is right...

From http://www.scotbanks.org.uk/legal_position.php

"The legal position with regard to Scottish Banknotes is as follows:

Scottish Banknotes are legal currency – i.e. they are approved by the UK Parliament. However, Scottish Bank notes are not Legal Tender, not even in Scotland. In fact, no banknote whatsoever (including Bank of England notes!) qualifies for the term 'legal tender' north of the border and the Scottish economy seems to manage without that legal protection."

MSE_Martin

secue wrote: »

To be honest I don't think you have really thought about what you are posting here MSE Lawrence. If this is true it may well be an interesting fact, however i seriously suggest you post your sources on this....many people are just taking your word for it, but how do you KNOW?

Show us the laws that say this is right...

Years ago I experienced the same thing when a taxi driver in leeds suggested my money wasn't worth anything more than monopoly money.

I know you haven't meant it as such, but your actually having a little dig at the scots here...the english have been dismissive of our currency for years and your not doing us any favours by legitimizing that dismissal.

Hi folks, sorry for those that are upset by the fact... yet It is true... And of course we check our facts very diligently as always. Don't blame MSE Lawrence for this, he posted it, but I wrote it.

These facts are cross checked at the Bank of England, Bank of Scotland and a variety of other sources. The point being that legal tender doesn't mean very much.... a means of exchange is what counts.

For example... this Q&A is from the Bank of Scotland Bank Notes website (Edit cross posted with the note above)

"Q. Are the new banknotes legal tender?

Scottish Banknotes are legal currency – i.e. they are approved by the UK Parliament. However, Scottish banknotes are not legal tender, not even in Scotland. Interestingly, no notes from any bank - including the Bank of England – are legal tender in Scotland. Only the £1 and £2 coins are legal tender there. HM Treasury determine which notes are legal tender. For more information on legal tender visit http://www.scotbanks.org.uk/legal_position.php. The new banknotes will not be any different from the old notes in this respect."

Martin

djdrever

This Nerdy Note could cause a lot of confusion.

I'm sorry to say but for years Scots have had trouble spending money in England because shopkeepers refuse to take Scottish money, saying things like "My bank won't take it" A post like this confuses things further, when the many people will read nothing more than the title.

Pound notes are still available and used in Scotland, though to a much lesser degree than in the past.

I've not been "down south" with the new Scottish notes ("Bridges" designs) but I suspect they were rejected by many establishments before people started to get used to them, maybe they still are being rejected - has anyone had experience of this?

Mac2308

Why wasn't the Headline "English Notes aren't legal tender in Scotland" instead? Is this another example of the English having an un-neccessary dig at us Scot's?? I am fed up going into shops in England and being looked at as if I am some sort of criminal for daring to try and use a Scottish note, but when my English wife uses an English note in Scotland she would be outraged if the legality of the note was questioned!

scottishlass

I've lost count of the number of times my Scottish notes have not been accepted down in England so much so I've try to withdraw money as soon as I get down there so that I have some English Notes. I remember as a kid when I lived in England I used t love getting Scottish notes and I'm sure I never had a problem back then (apart from with £1 notes - which even the Halifax (who at that time had just joined with the RBS) refused to take).

Although I've never had a English note refused up here when the new English £20 notes came out a few of the shops stopped to check them as they had yet to see them (if that makes sense). I guess its an interesting fact but I don't think I'll be telling many people it as like someone sad earlier its harding enough convincing people to accept Scottish notes without this extra fact