Can a loan company refuse to accept a payment?

Asked on September 15, 2012 under Bankruptcy Law, Ohio


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.

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