Can Lender Refuse Payment

Question: Can a finance company turn down any form of payment and if they do, is the bill considered automatically paid in full by law?

Answer: A finance company cannot turn down cash or certified funds. Whether they can decline a personal check depends on the facts — the terms of the agreement, whether they have reason to believe it would be dishonored, etc.

The consequences of an improper refusal do not include that the bill is deemed to be paid in full. They would include cessation of interest from the date of tender, if the money is paid subsequently.

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