MattN

does anyone know how you check if these are real, do you need to call the issuing branch or will any branch of that bank be able to tell me?

Cheers,

Matt

BarryK

Ring your own bank, they should help you, or at least give you best advice.

Shark

Don't even go near a bankers draft. Cleared funds are the only way.

I remember a post a while back where the sellers brother took the draft to the bank, they said it was ok, but it still bounced.

Take care,

David

BarryK

Blimey and he's in the car trade!!

JoeyDeacon

First time I ever saw a bankers draft was when I needed to pay for my house deposit last year. When I saw what I got for my £7500 I couldn't believe it, it looked like a cheque that had been written out by a 12 year old.

They must be so easy to forge, especially as most people have no idea what to look for so I for one wouldn't accept one.

stevencotton

Paid for my scooby with a bankers draft (Abbey National), it was a nicely presented printed out cheque with lots of zeroes on it and I rather liked it. Think the dealership called the bank to make sure it was ok.

Steve.

[Edited by stevencotton - 10/24/2001 3:09:54 PM]

MattN

I have no worries about what it looks like! After all it is simply a cheque written out for and on behalf of the issuing bank - they only issue if there is sufficent funds in the customers account, this is then transferred in to an account of the bank/BS.

That's why they are supposed to be safe I.e. the cheque is from the bank not the person.

My only worry is when they hand it over I want to verify it's real and don't want to make dozens of phonecalls to find out if it's real - you know what banks are like!

The problem with cleared funds is that I doubt they'd be wiling to transfer cash to my account, I know I wouldn't.

ChrisB

When I was sorting out the payment for buying my Scooby privately, I asked my bank (HSBC) about the best way to do it.

They said a bankers draft still has to clear when submitted.

I did an eletronic transfer direct from my account to the guy selling it so he could see the cash in his account before I picked up the car.

ChrisB.

Shark

I think the point is that it's still a cheque and as such has to clear. ie if funds are removed on the day the cheque is written it can bounce.

Any bank workers care to comment?

David

Chris L

As an ex-banker (and thinking back to my banking exams, before I saw the light and got into IT ) I'll make a comment.

A bankers draft (not to be confused with a Building Society cheque) is in effect a cheque. However, the major difference is that it is effectively drawn on the bank (rather than a personal account). In theory, a bankers draft will only be issued by the bank if there are funds available.

In the past, bankers drafts have been considered almost 'cash' because no bank would ever refuse payment of a draft drawn in its name (the reason being that this would effectively call into question the issuing banks ability to pay it's debts)

In these more enlightned times, it is still wise to check with the issuing bank before accepting payment by draft. The number of fraudulant drafts means that banks, can (and have in the past) refuse to honour stolen drafts.

The best way to accept payment these days is to request an electronic funds transfer via CHAPS (Clearing House Automated Payment System). This normally costs around £25 (not that much more than issuing a draft). Payment can in some cases, be made the same day and you can phone the bank to confirm that the funds have been deposited in your account.

Hope this helps

Chris

MattN

thanks for the input guys.

I know from experience they only issue the bankers draft if you have available funds and it's debited from your account and into a holding account, which is on behalf of the bank.

I also knew that they can be forged hence 'how do you check if it's real'. I'll just ring the issuing branch and see what they say.

thanks again.

MattN

well....the bugger didn't turn up in the end. Called to say he couldn't afford it now!!!

I hate selling cars!!!