Bank won't take cash to repay debt.

The Co-operative Bank is quoted in today's Sun newspaper at http://cma.thesun.co.uk/sol/homepage/news/2720040/My-cash-not-good-enough-for-Co-op-bank.html
as saying that they are unable to accept cash payments for credit card bills following a recent EU directive.
I have not found the actual directive to check it out myself but I find it hard to believe that cash is a no-no. I thought that bank notes were legal tender for all debts.
Most people will not be affected by this but it will badly hit poor people who don't have bank accounts and who may not be eligible to get them for one reason or another.
Does that mean that John Smith of Park Bench No. 5, People's Park, Grimsby will have to get a postal order at considerable expense to pay for his Vanquis credit card bill?
--
Alasdair.


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Alasdair wrote:

http://cma.thesun.co.uk/sol/homepage/news/2720040/My-cash-not-good-enough-for-Co-op-bank.html

"Maurice Dunbar, 69, was told new Euro rules meant his £60 in notes could not be accepted.
He had paid his bills with cash at the Co-operative branch for 25 years.
Maurice, who works as a clairvoyant, said: "What kind of bank does not accept cash?"
He didn't see *that* coming. Maybe he should be rethinking his occupation.
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http://cma.thesun.co.uk/sol/homepage/news/2720040/My-cash-not-good-enough-for-Co-op-bank.html

I can't help thinking that a person who's so poor that they can't get a basic bank account is unlikely to have a credit card.
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Add to the fact I think everyone is now entitled to a basic bank account so they can have benefit payments paid in to them.
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But basic bank accounts do not usually provide chequebooks or DD cards.
--
Les
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No, but you can set up DD's And if you go into the branch, they'll give you a printed cheque subject to the funds being available in your account, which is a lot cheaper than getting a postal order from the PO.
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That's probably the reason the Co-op has invented this special new rule. Suppliers would love to force DDs on as many people as possible. There's nothing as handy as having access to your customers' bank accounts.

Never heard of that, my A&L basic account doesn't offer it (not explicitly anyway). How much does it cost and how long does it take to arrange?

But probably a lot less convenient than paying cash.
--
Les
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Big Les Wade wrote:

I've had to do it twice because of an emergency, once got mugged and lost all my cards, canceled them at the bank and had the bank raise a counter cheque made out to cash for me to get hundred quid.
Just ask them to raise a counter cheque and make it out to whoever you like. It didn't cost me anything and was done there and then.

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Mmm. My A&L account T&Cs forbid me from using counter services. I have to use their phone helpline for stuff that I can't do at an ATM. I'll try ringing them and see if it's possible.
--
Les
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Big Les Wade wrote:

Crikey! Is it an internet/phone only account or something? Mines a standard bank account.

Good idea, you might need it in an emergency. Note, just because it didn't cost me anything doesn't mean it won't cost you ;)

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It's a Basic Bank Account. The flyer has printed on it "For Penniless, Untrustworthy Scum Only." Well it doesn't but it might as well have.
Many people have to survive with just these Basic Accounts. And if that's all you've got, you have to have a credit card in order to buy stuff or pay bills online.
--
Les
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A million Nigerian scam-artists cannot all be wrong, can they?
--
< Paul >

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Sam wrote:

Not on mine you can't.
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Really? I thought that was a feature of all current accounts, basic or otherwise. To be fair though, I only have experience of basic accounts with Lloyds TSB and Halifax, so I don't know what the other's T&C's are.
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The user guide for mine (A&L Basic) says you can set up DDs on it, but I can't be sure whether it's correct. It also said you could set up Internet banking on it, and when I went to the trouble of doing so I found you couldn't actually do any Internet transactions, you could only check your balance online.
--
Les
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On Mon, 09 Nov 2009 22:55:45 +0000, Alasdair wrote:

enough-for-Co-op-bank.html

ISTR that if you offer to pay in legal tender, and they decline to accept, your debt is discharged. And that legal tender is £1 coins.
Maybe I got that wrong.

Most people can get a "Basic banking account", even poor people with poor credit histories.
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cobble wrote:

Somebody will be along to correct in a minute but ISTR that if you offer legal tender and they refuse to take it they cannot take you to court for non payment.
BoE Notes are legal tender and I think it is also coins up to a liit of 20. So they can send you away with your £10k in 2ps and say "don't be silly."
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"Rob" wrote

If so, then who decides whether you're telling the truth or not?...
NOT telling truth => CAN take to court for non-payment.
But... Telling the truth => canNOT go to court, so court cannot even decide if you're telling the truth that you offered & they refused!
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wrote:

They certainly can.
But you can then satisfy the debt by paying *into court* in legal tender, after which, their suit will not be successful.
Legal tender has NO meaning in normal everyday transactions, in spite of what huge numbers of people believe.
<http://www.royalmint.com/Corporate/policies/legal_tender_guidelines.aspx
--
Alex Heney, Global Villager
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What happens then about costs? Would the plaintiff be liable for costs if it were shown that he had originally refused to accept payment in legal tender?
--
Les
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