Payback Time to the DMV!

[DrHenley]

Originally Posted by sdmc530

Not here, we have a law saying that a merchant can refuse type of payment if it has a valid reason, like the payee is using "pennies" just to create a hardship or trying to be difficult. If a person came into our DMV with pennies they would be directed to the bank to get cash.

DEPENDS on whether you are paying in advance, or paying in arrears. To refuse payment in arrears would be in violation of U.S. Code Pub.L. 89–81, 79 Stat. 254

to wit:

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.

See: https://www.treasury.gov/resource-ce...al-tender.aspx

The guy in the video was paying a tax, therefore subject to legal tender laws. If he were paying for a new driver's license, that would possibly not be subject to legal tender laws, and the DMV could refuse payment.

That was passed in order to FORCE people to accept the new clad coins. Prior to that there were limits on legal tender status of coinage. In fact, the limit for pennies prior to the act was 25 cents.

You have to understand what "Legal Tender" is. If you go to the store and try to check out with pennies, they can refuse to transact business with you and tell you to put the items back on the shelf. But ANY debt, public or private, including paying the bill in a restaurant AFTER you have eaten the meal, is subject to the legal tender laws.

However if you go into a restaurant that requires payment in advance, they can require any type of payment they want, and refuse to do business with you if you don't agree. They can even ask you to pay in jelly beans.

The DMV can refuse payment IN ADVANCE, but they cannot refuse payment IN ARREARS, which would be a debt, or payment for a tax.

[FfNJGTFO]

Originally Posted by DrHenley

DEPENDS on whether you are paying in advance, or paying in arrears. To refuse payment in arrears would be in violation of U.S. Code Pub.L. 89–81, 79 Stat. 254

to wit:



See: https://www.treasury.gov/resource-ce...al-tender.aspx

So, as long as the debt is already established and exists, they have to accept US Currency. It would be interesting to see how the minutiae of this play out in various scenarios. For example, fast food drive in Windows. Does the act of ordering the food in the speaker establish the debt? After all, they often do quote the "amount due" in that speaker. Or, are you still paying "in advance" when you get to the payment window and before the food is "delivered" at window 2?

[TLE2]

I thought I remembered that pennies, although US coinage, weren't legal tender in some cases. But then I'm old.

[DrHenley]

Originally Posted by TLE2

I thought I remembered that pennies, although US coinage, weren't legal tender in some cases. But then I'm old.

That was true before 1965.

You might be old...If you remember things from the 60's like they were just yesterday....