Can a loan company refuse to accept a payment?

Asked on September 15, 2012 under Bankruptcy Law, Ohio

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

If were already in default and the company has instituted legal action against you, they may decline to accept payment until the case is resolved--you should put the money aside in a safe account, so if there is a judgment against you, you can use it to pay. Or if you tried to offer the payment as settlement in full of outstanding debt, when the payment is not the full amount owed, they could decline to accept it. But if you have been paying as per the terms of the loan agreement, then they need  to accept on-time payments.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.