Do you still owe a debt if the creditor refuses to accept payment for the full amount owed?

Answer 1

First, presuming there is an early prepayment clause that allows one to pay the total for the total balance, and not one that requires the payments to be made for the entire term of the contract. (Many loans require they be paid all the way through, effectively assuring the lender of the expected interest rate/return he wanted for the entire term of the investment). While I would think that absent something (and it better be in writting) that the payment is being refused because the lender forgives it, until it is paid -- it is owed. But there must be more here...lender/creditors generally have no motivation to refuse payment (unless part of the no early payment arrangement)...very much the opposite! --------------------------------------------------------------------------------------- Added by Danika37075 This is the full story. I took a quick loan out with a check in the Nashville, TN area. This had been going on for a little while, each week trying to get the amount reduced by paying a little extra. A couple of months ago, I was in the hospital and didn't pay the loan. I received a letter stating that I had until the 25th to pay the entire "loan" off. On the 25th I called to make sure that they were opened and the manager was there. When I told her that I had all the money and was about to come in and pay the entire check off, I was told it was too late. That she had already sent it to their lawyers and refused to accept my money. When I said that the letter stated I had until that day to pay it, she had forgotten which date she put and apologized, but still said it was too late. Now they are taking me to court for the money plus court cost. I thought that if you tried to pay a debt and they refused your money, that you then didn't owe the money. Am I wrong? What recourse do I have now? Thanks Danika