Paying debts in cash in a petty way

Question

I owe a £5,000 debt and I wished to make payment in the pettiest but legal way possible.

I would like to pay entirely in cash, I'm aware there is a previous case history in doing such a thing and I am aware there are rules regulating how many coins to value are legal tender.

I have prepared sorted piles of coins based on my basic understanding of what is legal tender:

• 20 * 1p = 20p
• 10 * 2p = 20p
• 92 * 5p = £4.60
• 50 * 10p = £5
• 50 * 20p = £10
• 20 * 50p = £10
• 4970 * £1 = £4970

I believe at this point this would be an acceptable form of payment.

I mix all these coins into one massive sack.

I then fill the sack with an assortment of confetti.

Just as I prepare to take the sack to make payment, my child who I have been teaching the value of money tips in a till full of fake coins. I don't have time so I delivery the sack as payment as is.

Have I paid in a way in which the creditor cannot refuse payment? At what point are they justified in their refusal? Am I responsible for the sorting of coins? Am I liable for the cost of time involved in sorting?

Although I am looking for an answer in a British context I'm happy to hear how this may differ in other countries.

Clarification: This question is entirely hypothetical.

Answer 1

Your payment can be refused in germany

Nobody is obligated to take more than 50 coins in legal tender under MünzG §3, as I already elaborated here. The only custom that gets social pressure to accept such a payment is bridal shoes, which customarily are to be paid in small change as that is considered to bring good luck. Otherwise, nothing forces them to accept a pile of loose change.

Only the Bundesbank is required to accept any amount of coins, for the purpose to change them for others or bills of higher denomination.

Your split is not legal in england-and-wales

Your payment is to be £5000. That is more than £10. As such, any denomination smaller than £1 is not legal tender for that transaction. You have to pay with 5000 £1 coins to be on the legal side and have the most coins possible.

Padding the bags... in general

Adding confetti to "pad the bags" might be seen as an attempt to cover up missing coins. The presence of fake coins definitely crosses the bridge to fraud - the mere giving them away knowing they are fake is fraud.

Answer 2

In English law, "legal tender" is effective in only one situation: the defence of "tender before claim".

In practice, in order to maintain such a defence, you must pay the money into court with a copy of the claim form and defence. See CPR37.2 and section 6 of the Courts Funds Rules 2011.

Unfortunately for you, the Court Funds Office expects to be paid by cheque, though the rules say that ordinarily a cheque or banker's draft is acceptable. See section 7 of the court funds rules. To pay in cash, you the Accountant General would have to direct otherwise.

There might be some exceptionally unlikely situation in which a court might accept a very awkward set of coins, but so unlikely is it as to be discounted.

The upshot of all this is that, although in theory one can offer to pay in legal tender as a defence to a claim in debt, in practice the rules for legal tender are irrelevant - the rules of the Court Funds Office are what prevail.

Answer 3

As long as you pay them, they are paid.