Checking a Bankers draft

DiscoKandy · 8 Jan 2008 at 09:20

Morning chaps,

Does anyone know how I can check the legitimacy of a bankers draft before I hand over my car? Basically, the guy has already paid the deposit on it in cash and is coming tomorrow with a bankers draft for the balance.

For numerous reasons it isn't possible for me to hold the car and wait until the draft has cleared, therefore does anyone know if it is possible to obtain the details of the draft and contact either my bank or his issuing bank to check that it is genuine etc ?

I have tried contacting my Bank for advice but they were totally useless and just kept telling me 'a bankers draft is guaranteed payment, you’ll be fine' great.

KaHn · 8 Jan 2008 at 09:22

It clears instantly, as its just like cash, just take it to the bank with him and cash it?

http://www.apacs.org.uk/payment_options/cheques_draft.html

KaHn

SpeedFreak · 8 Jan 2008 at 09:24

My brother's mate was paid for his quad bike with a bankers draft. All looked sound and it was paid into his account, only to be stopped by the bank. Turned out it was a stolen draft filled in by thieves, then scotland yard got involved. The guys were caught, but not by the police, some less than savory Irish connections sorted it out for them lol.

DiscoKandy · 8 Jan 2008 at 09:26

I didn't think that it cleared instantly, unfortunately neither of us can meet during banking hours either.

2.Be aware that a banker's draft is not necessarily safe from fraud. If you receive a banker's draft in payment for goods you must allow time for the draft to clear before releasing the goods. Banker's drafts can be stolen or altered like any other cheque and if it is altered, stolen or counterfeit it will not be honoured.

SpeedFreak · 8 Jan 2008 at 09:27

http://freespace.virgin.net/bank.help/Facts/documents/10455.html

Wicksta · 8 Jan 2008 at 09:30

When I sold our 318ci I went into the bank with the buyer and we transferred the money straight over (same bank). If he wasn't the same bank then I'd want to see him draw out any bankers draft before trusting it.

DiscoKandy · 8 Jan 2008 at 10:04

I'm going to contact the guy and get the details of the draft and then call his issuing bank asking for them to confirm that it's a valid draft before releasing the car.

Why do the banks make everything so hard

Butters · 8 Jan 2008 at 10:13

When he gives you the draft, you are entitled to call the bank (thats presenting the draft) and verify it is legitimate.

Bankers drafts do not clear instantly in the banking world only they are only issued provided the funds are in that persons account.

A draft can still be stopped or cancelled and if it stolen, well, thats a whole nother story.

Chris Wilson · 8 Jan 2008 at 11:01

I am in the motor trade, forget what the bank is telling you, get him to pay in cash, bankers drafts are routinely forged, stolen, fraudulent or stopped. If he can't or won't pay cash, or await cleared funds, find another buyer. If the bank accepts a draft, pays the money into your account, they can still take it out again if the draft later proves dodgy. Cash is King.

HEADRAT · 8 Jan 2008 at 11:04

Exactly, don't trust a bankers draft

ste_bla · 8 Jan 2008 at 11:07

Phone bank its with and confim its real, and dont use the number (if there is one) on the cheque

Realist · 8 Jan 2008 at 11:10

You've already been told above not to trust bankers drafts, as stated above if the guy has nothing to loose and is not a crook then he can quite easily get cash instead of the draft.

Cash is king indeed.

Best wishes.