Debt isn’t ‘cleared’ if an offer of payment in cash is refused

Debt isn’t ‘cleared’ if an offer of payment in cash is refused

A widely shared Facebook post claims that a debt will be written off if legal tender—cash—is offered but refused. However, this isn’t the case.

The post, which has been shared over 500 times, says: “Did you know? If you offer legal tender to clear a debt and it is refused, the debt is cleared from that moment. 

“So if you go into a petrol station and fill up with £100 and offer to pay with legal tender and they refuse it, they are clearing the debt and you now owe nothing.”

However, there is no obligation on businesses to accept cash payments. Legal tender has a narrow definition, meaning that you cannot be sued for non-payment if you pay ‘into court’ in legal tender. This does not apply to normal transactions. 

Honesty in public debate matters

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