Do creditors have to accept any payment?

Asked by: Yasmeen Orn  |  Last update: October 23, 2025
Score: 4.3/5 (38 votes)

Your creditors do not have to accept your offer of payment or freeze interest. If they continue to refuse what you are asking for, carry on making the payments you have offered anyway.

Can a creditor legally refuse to accept payment?

Keep in mind that, just like collectors, creditors are not compelled to accept your payment offer. The idea that they have to accept your payment or discharge the debt is a myth (see first paragraph). When creditors refuse payments, it's usually because company policy prohibits it.

Does a company have to accept a payment plan?

The short answer is no, but for a successful debt collection it may be worth considering a payment plan. Before we get into that, some context is useful. There are two kinds of payment plan most people can relate to. 1) Pre-agreed Loan: also called a finance agreement.

What is the 777 rule with debt collectors?

Specifically, the rule states that a debt collector cannot: Make more than seven calls within a seven-day period to a consumer regarding a specific debt. Call a consumer within seven days after having a telephone conversation about that debt.

Is any kind of money that a creditor must accept in payment for debts?

Legal tender is a form of money that courts of law are required to recognize as satisfactory payment for any monetary debt. Each jurisdiction determines what is legal tender, but essentially it is anything which, when offered ("tendered") in payment of a debt, extinguishes the debt.

NEVER PAY COLLECTIONS! Telling debt collectors they get NOTHING in 2025

41 related questions found

What are three things debt collectors are prohibited from doing?

Debt collectors cannot harass or abuse you. They cannot swear, threaten to illegally harm you or your property, threaten you with illegal actions, or falsely threaten you with actions they do not intend to take. They also cannot make repeated calls over a short period to annoy or harass you.

Can a creditor refuse partial payment?

Yes, creditors can refuse partial payments because they're not considered to be full payments. This allows creditors to legally charge late fees, add interest, and mark your account as delinquent or in default.

What is the 11 word phrase to stop debt collectors?

If you are struggling with debt and debt collectors, Farmer & Morris Law, PLLC can help. As soon as you use the 11-word phrase “please cease and desist all calls and contact with me immediately” to stop the harassment, call us for a free consultation about what you can do to resolve your debt problems for good.

How to legally beat debt collectors?

Here are a few suggestions that might work in your favor:
  1. Write a letter disputing the debt. You have 30 days after receiving a collection notice to dispute a debt in writing. ...
  2. Dispute the debt on your credit reports. ...
  3. Lodge a complaint. ...
  4. Respond to a lawsuit. ...
  5. Hire an attorney.

How long before a debt becomes uncollectible?

Most states or jurisdictions have statutes of limitations between three and six years for debts, but some may be longer. This may also vary depending, for instance, on the: Type of debt. State where you live.

Can creditors refuse a debt management plan?

Sometimes a creditor will refuse to deal with a DMP provider. This could be because the creditor doesn't want to accept the reduced payments or sometimes it could be because they've objected to you using a fee-charging provider, which would mean there's less money to pay the debts you have with them.

Can you make monthly payments to debt collectors?

You can get them paid faster and with less effort. You can make a lump-sum payment. You can make monthly payments, which is easier and cheaper than a garnishment. (Please note that some debt collectors may prefer a garnishment anyway.)

What happens if I have nothing for bailiffs to take?

However, if you have nothing for bailiffs to take, it doesn't mean that nothing will happen and your debt will automatically be written off. In most cases, you'll still be charged fees and the bailiffs could return the debt to your creditor which could result in further legal action.

What's the worst a debt collector can do?

Debt collectors are not permitted to try to publicly shame you into paying money that you may or may not owe. In fact, they're not even allowed to contact you by postcard. They cannot publish the names of people who owe money. They can't even discuss the matter with anyone other than you, your spouse, or your attorney.

What should you not say to a creditor?

Don't give a collector any personal financial information. Don't make a "good faith" payment, promise to pay, or admit the debt is valid. You don't want to make it easier for the collector to get access to your money or do anything that might revive the statute of limitations.

Can a lender refuse to accept payment?

Yes, a mortgage company can refuse payment.

How to outsmart a debt collector?

6 steps for dealing with a debt collector
  1. Don't give in to pressure to pay on first contact. ...
  2. Gather the facts. ...
  3. Know your rights around communicating with debt collectors. ...
  4. Submit a complaint if the debt collector violates your rights. ...
  5. Never ignore a court summons for debt collection.

Is it illegal to ignore debt collectors?

Continue to call or contact you if you asked them in writing to stop doing so. Don't ignore debt collectors—they will keep contacting you and may sue you.

Can you dispute a debt if it was sold to a collection agency?

Can you dispute a debt if it was sold to a collection agency? Your rights are the same as if you were dealing with the original creditor. If you do not believe you should pay the debt, for example, if a debt is stature barred or prescribed, then you can dispute the debt.

How do I silence my debt collector?

If you ask a debt collector to stop all contact – regardless of the communications channel – the collector must stop. Keep in mind, though, that you could still owe the debt. If you don't want a debt collector to contact you again, write a letter to the debt collector saying so.

What is called debt trap?

A debt trap means the inability to repay credit amount. It is a situation where the debtor could not be able to repay the credit amount.

What is debt forgiveness called?

Debt relief or debt cancellation is the partial or total forgiveness of debt, or the slowing or stopping of debt growth, owed by individuals, corporations, or nations. From antiquity through the 19th century, it refers to domestic debts, in particular agricultural debts and freeing of debt slaves.

What happens if you never pay collections?

If you continue not to pay, you'll hurt your credit score and you risk losing your property or having your wages or bank account garnished.

How likely is it that a collection agency will sue?

While smaller debts are less likely to result in legal action, there are no guarantees. In many cases, though, debt collectors will prioritize larger debts, as they offer a higher return on the time and legal fees associated with a lawsuit.

What will the debtor do if the creditor refuses to accept payment?

Generally, refusal by the creditor to receive money does not discharge the debtor from the obligation to pay the debt. This is because the debt is not extinguished by the mere refusal. It is the debtor's duty to look for the creditor and pay back the debt, which seems to be what you did.