What is pay under protest?

Pay under protest is a term that refers to a situation where a person or a company makes a payment for a bill or service, but disputes the amount being charged. This is usually done to avoid legal action or penalties for non-payment, but the payment is made under the understanding that the dispute will be resolved later.

When a person pays under protest, it means that they are paying the disputed amount solely to avoid default or legal action, and they do not accept the validity of the claim or the amount being charged. They may also put in writing that the payment is being made under protest and that the payment does not compromise their right to challenge the amount or validity of the claim at a later time.

The concept of pay under protest is recognized in many countries and can be used in a variety of situations, such as disputes with contractors or vendors, disputes involving property taxes, and insurance claims. By paying under protest, the payer can protect their financial and legal standing while they work to resolve the dispute.