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If a creditor refuses to accept payment on a loan what rights do I have, and what federal statute covers me?




First, please let us know what company is this? Do you have a binding contract signed with them?

Sub: #1 posted on Wed, 06/27/2007 - 16:03

Bony Bony

(Posts: 286 | Credits: 42.39)

That is a material breech of the contract and is considered prevention of performance ... they are preventing you from fulfilling your duties.

Below are some quotes from a law book I have. Unfortunately, I don't have exact references to the actual laws regarding contracts:


The Uniform Commercial Code (UCC 3-603) further states that ???????If tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument and the tender is refused, there is discharge, to the extent of the amount of the tender ???????with respect to the obligation to which the tender relates.???????

If the creditor filed suit against you, then you could easily assert a positive defense on grounds that 1) the presentment of your payment to the creditor is a tender to perform obligations under the contract; 2) refusal of tender by the creditor is a repudiation that excuses further performance of debtor on the contract; and 3) preventing the obligor from tendering payment constitutes a material breech that discharges the obligor from the contract.

Sub: #2 posted on Thu, 06/28/2007 - 19:24

DebtCruncher DebtCruncher
Moderators
(Posts: 2296 | Credits: 269.79)

I was told via the phone by my lienholder that it was a corporate decision and they do not want to do business with me and refuse my two months of payment for my car. This happened yesterday 06232009

Sub: #3 posted on Wed, 06/24/2009 - 06:59

Unregistered


Who is the lender?

Sub: #4 posted on Wed, 06/24/2009 - 07:04

desperatelyseekingsanity desperatelyseekingsanity

(Posts: 1129 | Credits: 58.41)

Were you behind on the payments? Do you still have the car? You have an executory contract, and unless you have actually defaulted on the contract, then they can't just "stop doing business with you" -- in that case, they are in breech of contract.

Sub: #5 posted on Wed, 06/24/2009 - 15:57

DebtCruncher DebtCruncher
Moderators
(Posts: 2296 | Credits: 269.79)

They can refuse payment in certain circumstances. If you are behind more than the two payments you were offering, they can refuse because you are not bringing it up-to-date - if the loan is already considered 'defaulted' they can hold out for full payment of the balance. Did they give you any idea what they were looking for??

Sub: #6 posted on Thu, 06/25/2009 - 09:19

info4444 info4444

(Posts: 2 | Credits: 0.45)

check your state laws in my state making a payment even if behind still stand in "good faith" you made a effort to pay, if you sent a check and they sent it back that is evidence in court. I know my home lender is trying the same stuff but if you let the internet do the work for you, you will find very interesting info.

Sub: #7 posted on Thu, 03/04/2010 - 06:20

Unregistered


I had a debt collector call me to collect a debt and when I told them how much I could pay the debt collector told me that it wasn't enough and that payment would not be accepted. I do not have a signed contract over this bill, and was trying to make payments and they refused my payment

Sub: #8 posted on Sat, 06/26/2010 - 12:25

Unregistered


You can still be sued while making "good faith" payments.

Sub: #9 posted on Sat, 06/26/2010 - 12:40

SOAPLADY SOAPLADY
Moderators Cum Industry Expert
(Posts: 17208 | Credits: 4746)

not in the state of missouri if u are behind 10 payments and offer a payment of 1 dollar and its refused contract void

Sub: #10 posted on Thu, 11/18/2010 - 04:45

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