Don't trust CHAPS bank transfers for car payment....
Discussion
Mods - please sticky to help save people from loosing tens of thousands in scams.
My bank told me not to trust CHAPS payments until they have cleared. On the face of it you may see a lump sum go into your bank account on the same day it is issued. Typically they say if it is sent by 2pm, you will see it in your account by 5pm that day.
However there has been a spate of CHAPS payments being REVERSED on that very same day! The money is not guananteed to stay put in your bank account until the NEXT working day. You will need a printed hard copy bank statement from your bank cashier on the next working day to be safe.
So be warned. Do not let someone drive your car away on the same day a CHAPS payment is received. Check your balance the next working day before letting the car go! Clearly this means you cannot sell a car on a friday this way, as you won't be able to check your statement until monday morning.
My bank told me not to trust CHAPS payments until they have cleared. On the face of it you may see a lump sum go into your bank account on the same day it is issued. Typically they say if it is sent by 2pm, you will see it in your account by 5pm that day.
However there has been a spate of CHAPS payments being REVERSED on that very same day! The money is not guananteed to stay put in your bank account until the NEXT working day. You will need a printed hard copy bank statement from your bank cashier on the next working day to be safe.
So be warned. Do not let someone drive your car away on the same day a CHAPS payment is received. Check your balance the next working day before letting the car go! Clearly this means you cannot sell a car on a friday this way, as you won't be able to check your statement until monday morning.
Edited by zagato on Wednesday 14th November 15:46
zagato said:
Mods - please sticky to help save people from loosing tens of thousands in scams.
My bank told me not to trust CHAPS payments until they have cleared. On the face of it you may see a lump sum go into your bank account on the same day it is issued. Typically they say if it is sent by 2pm, you will see it in your account by 5pm that day.
However there has been a spate of CHAPS payments being REVERSED on that very same day! The money is not guananteed to stay put in your bank account until the NEXT working day.
So be warned. Do not let someone drive your car away on the same day a CHAPS payment is received. Check your balance the next working day before letting the car go! Clearly this means you cannot sell a car on a friday this way, as you won't be able to check your statement until monday morning.
Seems odd as CHAPs is what is used for house sales, and we are talking big bucks there. My chaps payment went through on Friday morning and i got the keys on Friday afternooon....My bank told me not to trust CHAPS payments until they have cleared. On the face of it you may see a lump sum go into your bank account on the same day it is issued. Typically they say if it is sent by 2pm, you will see it in your account by 5pm that day.
However there has been a spate of CHAPS payments being REVERSED on that very same day! The money is not guananteed to stay put in your bank account until the NEXT working day.
So be warned. Do not let someone drive your car away on the same day a CHAPS payment is received. Check your balance the next working day before letting the car go! Clearly this means you cannot sell a car on a friday this way, as you won't be able to check your statement until monday morning.
From the banks clearing association website:
APACS said:
CHAPS is an electronic bank-to-bank same-day value payment made within the UK in either sterling or euro.
The main benefit of CHAPS is that it is fast, secure and efficient and the money is transferred the same day. Unlike other forms of payment such as cheques, CHAPS payments are irrevocable.
CHAPS is one of the largest real-time gross settlement (RTGS) systems in the world. Banks themselves use CHAPS to move money around the financial system, but it is also used regularly:
* for business-to-business payments;
* by solicitors/licensed conveyancers to transfer the purchase price of a house between the bank accounts of those involved;
* by individuals buying or selling a high-value item, such as a car, who need a secure, urgent, same-day guaranteed payment.
Being polite, I think you may have misunderstood what you have been told. BACs payments, on the other hand, are regularly reversed...The main benefit of CHAPS is that it is fast, secure and efficient and the money is transferred the same day. Unlike other forms of payment such as cheques, CHAPS payments are irrevocable.
CHAPS is one of the largest real-time gross settlement (RTGS) systems in the world. Banks themselves use CHAPS to move money around the financial system, but it is also used regularly:
* for business-to-business payments;
* by solicitors/licensed conveyancers to transfer the purchase price of a house between the bank accounts of those involved;
* by individuals buying or selling a high-value item, such as a car, who need a secure, urgent, same-day guaranteed payment.
OK, the next time I sell a car, I'll tell the bloke to bugger off and come back tomorrow because I don't trust him!
How the hell are we supposed to buy or sell!? Cash could be forged, cheques dud, bank drafts dud, a cheque/bank draft even after cleared can be reversed at any time afterwards, and now CHAPS is dodgy too!?
(Not directed at the OP, just general frustration!)
How the hell are we supposed to buy or sell!? Cash could be forged, cheques dud, bank drafts dud, a cheque/bank draft even after cleared can be reversed at any time afterwards, and now CHAPS is dodgy too!?
(Not directed at the OP, just general frustration!)
NiceCupOfTea said:
OK, the next time I sell a car, I'll tell the bloke to bugger off and come back tomorrow because I don't trust him!
How the hell are we supposed to buy or sell!? Cash could be forged, cheques dud, bank drafts dud, a cheque/bank draft even after cleared can be reversed at any time afterwards, and now CHAPS is dodgy too!?
(Not directed at the OP, just general frustration!)
Pretty much my experience last time I bought/sold a car. Seemed anyway you wanted to do the transaction, there's a way for a fraudster to take advantage. In the end it comes down to good old fashioned trust on one side or the other!How the hell are we supposed to buy or sell!? Cash could be forged, cheques dud, bank drafts dud, a cheque/bank draft even after cleared can be reversed at any time afterwards, and now CHAPS is dodgy too!?
(Not directed at the OP, just general frustration!)
NiceCupOfTea said:
OK, the next time I sell a car, I'll tell the bloke to bugger off and come back tomorrow because I don't trust him!
How the hell are we supposed to buy or sell!? Cash could be forged, cheques dud, bank drafts dud, a cheque/bank draft even after cleared can be reversed at any time afterwards, and now CHAPS is dodgy too!?
(Not directed at the OP, just general frustration!)
Get one of those chip & pin machines?How the hell are we supposed to buy or sell!? Cash could be forged, cheques dud, bank drafts dud, a cheque/bank draft even after cleared can be reversed at any time afterwards, and now CHAPS is dodgy too!?
(Not directed at the OP, just general frustration!)
or maybe exhange stuff e.g
have my wife and few rare stones and an ivory statue in the shape of a giraffe for your fiesta etc etc
Santa Claws said:
Cash cash cash! Works every time.
except when its forged notes, or 5 blokes are waiting round the corner to reposess the notes.Just called my 24 hour banking on this subject, they are adamant that there is no way CHAPS can be reversed - once you see it in your account, that is it.
Bill Carr said:
It's not like you can run off and disappear with a house though, is it? 
Wanna bet??....http://www.youtube.com/watch?v=svpfCKGsmJE
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