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Bank Refuses Cash for Loan Payment
Can a bank refuse a cash payment to pay off an existing loan balance? I thought that cash is legal tender and unable to be refused.
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 Cash is legal tender "for all debts, public and private." It's possible that a bank might find the acceptance of cash cumbersome and perhaps even a security challenge, depending on the location and office of the bank. However, getting the bank to accept the cash if it has a mind not to, could be a hassle.
If you do offer the cash payment and actually bring it to the bank and get turned away, have a witness. If you end up having to pay added interest or fees, you might have a good argument in court to prevent the bank from collecting them.
If you are successful in making the cash payment and it's for more than $10,000, be prepared to provide your Social Security number, street address, employment information and a look at your driver's license, because the bank will have to file a Currency Transaction Report on your transaction. That's the law, too.
Published on BankingQuestions.com 11/17/09
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