Banker's draft
Discussion
If I go into a bank, with the account holder, and he/she instructs the cashier to make out a banker's draft, and I then walk into my bank with that draft, pay it in...
...is that a totally secure form of payment? Totally guaranteed?
I'm just presuming that they won't actually write out the draft without first checking that the account holder has sufficient funds?
...is that a totally secure form of payment? Totally guaranteed?
I'm just presuming that they won't actually write out the draft without first checking that the account holder has sufficient funds?
Parrot of doom said:
If I go into a bank, with the account holder, and he/she instructs the cashier to make out a banker's draft, and I then walk into my bank with that draft, pay it in...
...is that a totally secure form of payment? Totally guaranteed?
I'm just presuming that they won't actually write out the draft without first checking that the account holder has sufficient funds?
LOl banks dont spend their money without being able to get it back. A draft is better than cash.
Most secure way of doing it is going to the bank with the account holder and watching them draw the draft up. However, most banks won't do this on the spot, it must be pre-arranged. Even then, you may have to wait a while.
As an alternative, (and this is what I did when I sold my Integra type R) is to take the bank draft from the purchaser and ring directory enquiries and ask for the number of the issuing branch. Ring them up and tell them you want to verify a bank draft. You give them the number and the rest of the details and they will tell you instantly if its legit. A lot quicker method IMO.
As an alternative, (and this is what I did when I sold my Integra type R) is to take the bank draft from the purchaser and ring directory enquiries and ask for the number of the issuing branch. Ring them up and tell them you want to verify a bank draft. You give them the number and the rest of the details and they will tell you instantly if its legit. A lot quicker method IMO.
Banks are interesting businesses these days. They work to rules that suit themselves.
I would ask you bank to confirm how they would handle a draft and whether there were any circumstances under which the funds may not be transferred or indeed might be withdrawn at some point after the draft had been deposited.
Just to be sure. If you have it in writing as well they would be hard pushed to justify causing you any grief.
I would ask you bank to confirm how they would handle a draft and whether there were any circumstances under which the funds may not be transferred or indeed might be withdrawn at some point after the draft had been deposited.
Just to be sure. If you have it in writing as well they would be hard pushed to justify causing you any grief.
A draft cannot be cancelled once issued.
Once handed over to you it cannot be cancelled unless he/she returns it to their branch.
If you've watched them get it from their branch you'll be fine.
I paid for the 330 with a £20k draft. The sellers bank (Cahoot) lost it and I had to get a new one from my bank. They issued another but told me that the old one couldn't be cancelled and if it the person I gave it to found it and banked it I would be liable for it.
I even had to sign a form accepting this.
Fortunately for me I was happy that the guy I bought the car from was totally straight.
Once handed over to you it cannot be cancelled unless he/she returns it to their branch.
If you've watched them get it from their branch you'll be fine.
I paid for the 330 with a £20k draft. The sellers bank (Cahoot) lost it and I had to get a new one from my bank. They issued another but told me that the old one couldn't be cancelled and if it the person I gave it to found it and banked it I would be liable for it.
I even had to sign a form accepting this.
Fortunately for me I was happy that the guy I bought the car from was totally straight.
Im afraid a few poeple are misinformed here.
ANY bankers draught can be stopped in exactly the same way as a cheque.
The only thing that the circumstance you described protects you from is it actually bouncing i.e. guarantees the funds are there.
But if your buyer was crooked he could simply stop the draught and withdraw the money and there would still be no recourse.
ANY bankers draught can be stopped in exactly the same way as a cheque.
The only thing that the circumstance you described protects you from is it actually bouncing i.e. guarantees the funds are there.
But if your buyer was crooked he could simply stop the draught and withdraw the money and there would still be no recourse.
This document is good:
www.apacs.org.uk/downloads/Cheques&ChequeClearing%20-%20sep04.pdf
Bottom of page 22 explains difference between bankers draft and personal cheque.
www.apacs.org.uk/downloads/Cheques&ChequeClearing%20-%20sep04.pdf
Bottom of page 22 explains difference between bankers draft and personal cheque.
superlightr said:
if your going to the bank with the person withdrawing, why not ask them to arrange to withdraw it in cash and then you immediatly pay it back into your account in cash.
Taa Daaa !
Yeah that worked really well* on 15k Elise, let alone on a really expensive car.
* shite. Had to wait 2 hours whilst the money was gathered by the bank, despite knowing we would be coming to collect this cash. We then had to drive around with 15k cash in a brown envelope. Thats was great too! Oh and then when I paid it on, it triggered loads of money laundering alarm bells.
blindswelledrat said:
Im afraid a few poeple are misinformed here.
ANY bankers draught can be stopped in exactly the same way as a cheque.
The only thing that the circumstance you described protects you from is it actually bouncing i.e. guarantees the funds are there.
But if your buyer was crooked he could simply stop the draught and withdraw the money and there would still be no recourse.
And, according to my Building Society, although you can draw on the funds after 4 working days, a Banker's Draft/Order/Cheque hasn't fully cleared until 7 working days have lapsed. Therefore, during the period of being able to draw on the funds and the clearance date, the Draft/Order can be cancelled.
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