Legal tender?

[davidrj]

http://www.thisismoney.co.uk/money/news/article-3390519/I-buy-Royal-Mint-commemorative-coins-bulk-credit-card-gain-airmiles-cash-bank-s-refusing-accept-them.html

 

 

[1949threepence]

44 minutes ago, davidrj said:

http://www.thisismoney.co.uk/money/news/article-3390519/I-buy-Royal-Mint-commemorative-coins-bulk-credit-card-gain-airmiles-cash-bank-s-refusing-accept-them.html

 

 

I think the guidelines are very tricky and confusing, and I can understand why the guy in this case was taken in.

Most people (the proverbial man on the Clapham omnibus) would quite reasonably assume that "legal tender" always had its popularly perceived definition of currency/notes, acceptable in payment for goods and services. Seems this is not quite the case.

Legal Tender

Quote

 

Legal tender has a very narrow and technical meaning in the settlement of debts. It means that a debtor cannot successfully be sued for non-payment if he pays into court in legal tender. It does not mean that any ordinary transaction has to take place in legal tender or only within the amount denominated by the legislation. Both parties are free to agree to accept any form of payment whether legal tender or otherwise according to their wishes. In order to comply with the very strict rules governing an actual legal tender it is necessary, for example, actually to offer the exact amount due because no change can be demanded.

In practice this means that although the face-value UK coins in denominations of £5, £20, £50 and £100 are approved as legal tender, they have been designed as limited edition collectables or gifts and will not be entering general circulation. As such, UK shops and banks are not obliged to accept them in return for goods and services.

 

    

[Mr T]

That's pretty dodgy - I can understand a shop's reluctance to accept them but surely a bank is obliged to accept legal tender.

[davidrj]

I wonder what would happen if someone actually used them to pay a court fee. Who would then reimburse ther court or other recipient?

[Nutsaboutcoins]

2 hours ago, davidrj said:

I wonder what would happen if someone actually used them to pay a court fee. Who would then reimburse ther court or other recipient?

It would be interesting to find out.

But I also wonder whether banks would accept these coins if it wasn't for some people taking it to a ridiculous extreme by trying to cash in tens of thousands of pounds in one go.   

[Paulus]

Chris (CHP) has created a Facebook Group called "Pay your court debt/fines in £20, £50 and £100 coins NOW" 

[1949threepence]

On 1/13/2016 at 6:41 PM, Paulus said:

Chris (CHP) has created a Facebook Group called "Pay your court debt/fines in £20, £50 and £100 coins NOW" 

Yep, and thanks to David RJ for adding me. I'll have a proper look tomorrow   

[Prax]

Umm legal tender, neither legal nor tender in my opinion.

[Rob]

I note that the RM talks about silver £5 to £100 commemorative coins. Does this refer to silver only or both Ag and Cu-Ni. Clearly the face value of a silver £5 is £5, but its intrinsic value is higher as long as the silver spot is about £6/oz or higher.