Can someone refuse to accept cash payment on the premise that the money is "dirty"?

[her209]

Say you were buying a $40K car and you walked into the car dealer with cash money. Could they refuse to accept the payment because it could be money received from illegal activities despite the wording "This note is LEGAL tender for ALL debts, PUBLIC and PRIVATE"?

 

[newnameman]

Yes, a purchase is not a debt.

 

[Fritzo]

Many dealers won't accept large amounts of cash. They'll make you get a cashier's check so they won't have the risk of keeping cash on hand.

 

[So]

Originally posted by: her209
Say you were buying a $40K car and you walked into the car dealer with cash money. Could they refuse to accept the payment because it could be money received from illegal activities despite the wording "This note is legal tender for all DEBTS, public and private"?

If I already gave you the car and you owe me money, I have to accept it. If you want to buy a car and I haven't given it to you, I can demand payment in the form of live chickens and del monte canned creamed corn.

 

[Cogman]

They would have to be able to prove that the money came from illegal activities (In which case, the law is pretty clear about accepting stolen goods). However, if they have no proof of where the money came from, they must accept it. That means, if you want to, you can pay for your car with pennies.

 

[newnameman]

Originally posted by: Cogman
They would have to be able to prove that the money came from illegal activities (In which case, the law is pretty clear about accepting stolen goods). However, if they have no proof of where the money came from, they must accept it. That means, if you want to, you can pay for your car with pennies.

Ummm, no.

 

[MagnusTheBrewer]

The dislike of dealing with cash by said dealership can easily be overcome by telling them you will go elsewhere with your filthy lucre.

 

[MikeMike]

once you hit $10k in cash, you must fill out something for the gov't

 

[Zenmervolt]

Originally posted by: Cogman
That means, if you want to, you can pay for your car with pennies.

This little myth is wrong and I'm honestly amazed that people still perpetuate it.

Merchants can specify the terms of payment in any manner they desire and they are perfectly free to refuse to accept cash as payment. Merchants are definitely free to place restrictions on the type of currency used for the transaction as well (e.g. it is perfectly legal for places to refuse to accept bills larger than a $20 or to refuse to accept pennies for debts in excess of $0.50). Just because something has the status of legal tender does not mean that the law requires merchants to accept it.

Hell, a merchant could insist in payment in green jellybeans if they so desired.

EDIT: This information applies to merchants only. Creditors (e.g. people to whom you owe money for services that have already been rendered) are legally required to accept cash in any form. However, creditors are not the same thing as merchants.

ZV

 

[RbSX]

Originally posted by: MIKEMIKE
once you hit $10k in cash, you must fill out something for the gov't

Yeah up here in Canuckistan if you try to deposit more than $8,000 in cash you automatically trigger a few alerts.

 

[Tea Bag]

Originally posted by: So

Originally posted by: her209
Say you were buying a $40K car and you walked into the car dealer with cash money. Could they refuse to accept the payment because it could be money received from illegal activities despite the wording "This note is legal tender for all DEBTS, public and private"?

If I already gave you the car and you owe me money, I have to accept it. If you want to buy a car and I haven't given it to you, I can demand payment in the form of live chickens and del monte canned creamed corn.

Ahh, the heavy creamed corn portfolio finally pays off for the hungry investor!

 

[oogabooga]

Originally posted by: Tea Bag

Originally posted by: So

Originally posted by: her209
Say you were buying a $40K car and you walked into the car dealer with cash money. Could they refuse to accept the payment because it could be money received from illegal activities despite the wording "This note is legal tender for all DEBTS, public and private"?

If I already gave you the car and you owe me money, I have to accept it. If you want to buy a car and I haven't given it to you, I can demand payment in the form of live chickens and del monte canned creamed corn.

Ahh, the heavy creamed corn portfolio finally pays off for the hungry investor!

I invested in sandwhiches.... oh no im ruined!

 

[Redfraggle]

Originally posted by: her209
Say you were buying a $40K car and you walked into the car dealer with cash money. Could they refuse to accept the payment because it could be money received from illegal activities despite the wording "This note is LEGAL tender for ALL debts, PUBLIC and PRIVATE"?

There are very specific rules governing auto purchases, especially when cash is involved. So, yes. Nobody is obligated to sell you anything. In other words, if you are dealing drugs, you can be refused a car purchase.

 

[alkemyst]

a private business could choose not to accept USD currency at all.

 

[her209]

Originally posted by: Redfraggle

Originally posted by: her209
Say you were buying a $40K car and you walked into the car dealer with cash money. Could they refuse to accept the payment because it could be money received from illegal activities despite the wording "This note is LEGAL tender for ALL debts, PUBLIC and PRIVATE"?

There are very specific rules governing auto purchases, especially when cash is involved. So, yes. Nobody is obligated to sell you anything. In other words, if you are dealing drugs, you can be refused a car purchase.

But I don't deal drugs. The cash is 100% legit.

 

[Demon-Xanth]

http://www.ustreas.gov/educati...ncy/legal-tender.shtml


Question I thought that United States currency was legal tender for all debts. Some businesses or governmental agencies say that they will only accept checks, money orders or credit cards as payment, and others will only accept currency notes in denominations of $20 or smaller. Isn't this illegal?

Answer The pertinent portion of law that applies to your question is the Coinage Act of 1965, specifically Section 31 U.S.C. 5103, entitled "Legal tender," which states: "United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tender for all debts, public charges, taxes, and dues."

This statute means that all United States money as identified above are a valid and legal offer of payment for debts when tendered to a creditor. There is, however, no Federal statute mandating that a private business, a person or an organization must accept currency or coins as for payment for goods and/or services. Private businesses are free to develop their own policies on whether or not to accept cash unless there is a State law which says otherwise. For example, a bus line may prohibit payment of fares in pennies or dollar bills. In addition, movie theaters, convenience stores and gas stations may refuse to accept large denomination currency (usually notes above $20) as a matter of policy.

 

[imported_Mike]

Originally posted by: her209

Originally posted by: Redfraggle

Originally posted by: her209
Say you were buying a $40K car and you walked into the car dealer with cash money. Could they refuse to accept the payment because it could be money received from illegal activities despite the wording "This note is LEGAL tender for ALL debts, PUBLIC and PRIVATE"?

There are very specific rules governing auto purchases, especially when cash is involved. So, yes. Nobody is obligated to sell you anything. In other words, if you are dealing drugs, you can be refused a car purchase.

But I don't deal drugs. The cash is 100% legit.

Then go deposit it and write them a check

 

[Fritzo]

Originally posted by: her209

Originally posted by: Redfraggle

Originally posted by: her209
Say you were buying a $40K car and you walked into the car dealer with cash money. Could they refuse to accept the payment because it could be money received from illegal activities despite the wording "This note is LEGAL tender for ALL debts, PUBLIC and PRIVATE"?

There are very specific rules governing auto purchases, especially when cash is involved. So, yes. Nobody is obligated to sell you anything. In other words, if you are dealing drugs, you can be refused a car purchase.

But I don't deal drugs. The cash is 100% legit.

Oh, you don't??? OK, then just tell them this and they will believe you.

 

[wiredspider]

They generally don't like it because they aren't equipped to handle large sums of cash, they would much prefer a cashier's check.

 

[Freshgeardude]

lets be real here guys. its a car dealership with salesmen. they live to sell cars. they wont stop a 40k dollar sale because they guy has cash. they would probably work with him

 

[her209]

Originally posted by: Mike

Originally posted by: her209

Originally posted by: Redfraggle

Originally posted by: her209
Say you were buying a $40K car and you walked into the car dealer with cash money. Could they refuse to accept the payment because it could be money received from illegal activities despite the wording "This note is LEGAL tender for ALL debts, PUBLIC and PRIVATE"?

There are very specific rules governing auto purchases, especially when cash is involved. So, yes. Nobody is obligated to sell you anything. In other words, if you are dealing drugs, you can be refused a car purchase.

But I don't deal drugs. The cash is 100% legit.

Then go deposit it and write them a check

Why can't they just take the money and deposit it themselves?

 

[boomerang]

It's in your best interest to pay them in something other than cash regardless of why they won't take it.

http://biztaxlaw.about.com/b/2...-cash-transactions.htm

I'm on the side of the IRS on this one. Large sums of cash leads me to believe there is criminal activity involved - in one form or another.

Edit: What you're going to have to do is divide that $40K up into smaller amounts, go to various banks and get cashier's checks. You're going to get red flagged with that much cash at a bank. You're going to be red-flagged with $10K. Don't be surprised if a teller brings his or her superior over when you walk in with a large wad of cash.

We're not the people you need to convince that your large amount of cash is legit.

 

[ryan256]

Case in point.
Many years ago when my aunt was in college she had a job that caused her to acquire most of her cash in the form of coins. One night after pumping a few gallons of gas into her car she goes to pay the clerk and all she has left are several rolls of nickels and pennies. The clerk refuses to take the coins saying he wants cash or a check. Being a poor college student the coins were all she had. Clerk calls cops, cops show up. After hearing the situation cops tell clerk, "Either accept the coins or give her the gas for free."
This would fit with the merchant/creditor scenario since after the gas paid for after being pumped. Probably couldn't get away with it today though since most gas stations want you to pay before pumping.

 

[manlymatt83]

Originally posted by: ryan256
Case in point.
Many years ago when my aunt was in college she had a job that caused her to acquire most of her cash in the form of coins. One night after pumping a few gallons of gas into her car she goes to pay the clerk and all she has left are several rolls of nickels and pennies. The clerk refuses to take the coins saying he wants cash or a check. Being a poor college student the coins were all she had. Clerk calls cops, cops show up. After hearing the situation cops tell clerk, "Either accept the coins or give her the gas for free."
This would fit with the merchant/creditor scenario since after the gas paid for after being pumped. Probably couldn't get away with it today though since most gas stations want you to pay before pumping.

So what about a tow company? You owe them a debt. You have to pay them. So don't they HAVE to take pennies?

 

[ryan256]

Originally posted by: manlymatt83

Originally posted by: ryan256
Case in point.
Many years ago when my aunt was in college she had a job that caused her to acquire most of her cash in the form of coins. One night after pumping a few gallons of gas into her car she goes to pay the clerk and all she has left are several rolls of nickels and pennies. The clerk refuses to take the coins saying he wants cash or a check. Being a poor college student the coins were all she had. Clerk calls cops, cops show up. After hearing the situation cops tell clerk, "Either accept the coins or give her the gas for free."
This would fit with the merchant/creditor scenario since after the gas paid for after being pumped. Probably couldn't get away with it today though since most gas stations want you to pay before pumping.

So what about a tow company? You owe them a debt. You have to pay them. So don't they HAVE to take pennies?

Thats just it... legal tender basically means they MUST accept it as payment for a debt. Since the gas was already pumped she owed them a debt. Hence they were forced to accept the rolled coins.

Would be different if she walked up to a register in Sears and tried to pay for some jeans with rolled coins. Since she had not yet left the store with the jeans there was no debt. The store could refuse to accept the coins as payment.