Bankers draft - how do you know if it's genuine?
Bankers draft - how do you know if it's genuine?
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5LitreV8

Original Poster:

1,261 posts

257 months

Monday 26th March 2007
quotequote all
Looks like I've sold my car, subject to the buyer coming up with the readies.

I've agreed to a bankers draft as payment. However, how do you know if a bankers draft is in fact legit? Makes me slightly nervous.

Cheers.
5LV8

jonathant

880 posts

314 months

Monday 26th March 2007
quotequote all
If heard suggestions that you take the banker's draft (along with the prospective buyer) to your local bank and get them to verify and cash it.

5LitreV8

Original Poster:

1,261 posts

257 months

Monday 26th March 2007
quotequote all
jonathant said:
If heard suggestions that you take the banker's draft (along with the prospective buyer) to your local bank and get them to verify and cash it.


I did that many years ago - thought I was being over careful. Amazed me that the bank didn't even seem to know as it had been issued by another branch! BANKS! It did all work out OK in the end.

Cheers.

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cs174

1,271 posts

250 months

Monday 26th March 2007
quotequote all
There are stolen Bankers Drafts in circulation which are not picked up by the bank for some weeks after the money has cleared into you account.

I would suggest you accompany the prospective buyer to the bank when he asks for the Bankers Draft.

DarkMatter

1,503 posts

261 months

Monday 26th March 2007
quotequote all
I've heard that even after your bank has received a bankers draft it can still turn out to be a forgery, and the bank will take your money back.

Couldn't you get the buyer to set up an electronic funds transfer from their account to yours? I guess you could even open a special account just to receive the funds, and so avoid giving your regular account details to the buyer.

I used this method successfully when I was buying a car, though I suppose there was still some degree of trust that the seller would hand over the car and paperwork.

Rotaree

1,241 posts

291 months

Monday 26th March 2007
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I seem to remember that you can phone the issuing branch to confirm the details (number etc) with them.

GJR

827 posts

310 months

Monday 26th March 2007
quotequote all
I'm sure there must be ways to verify a genuine Banker's Draft but if this guys experience is anything to go by.... be careful, have a witness when you get it verifyed and mybe even ask the bank to confirm it is genuine in writing!?!?

www.pistonheads.co.uk/gassing/topic.asp?t=306426&f=23&h=0

5LitreV8

Original Poster:

1,261 posts

257 months

Monday 26th March 2007
quotequote all
GJR said:
I'm sure there must be ways to verify a genuine Banker's Draft but if this guys experience is anything to go by.... be careful, have a witness when you get it verifyed and mybe even ask the bank to confirm it is genuine in writing!?!?

www.pistonheads.co.uk/gassing/topic.asp?t=306426&f=23&h=0


That is very interesting reading. Thanks GJR.

OK, I think this is what I will do. Tell the buyer not to prepare a bankers draft, but instead on the day of pickup, march him down to the bank and get him to get the draft made up in front of my eyes. Sad I know - and I'm pretty sure the guy is genuine, but I guess this is the world we live in.

5LV8.

siobe

205 posts

246 months

Monday 26th March 2007
quotequote all
Rotaree said:
I seem to remember that you can phone the issuing branch to confirm the details (number etc) with them.


This is what a friend in the car trade does when he knows a draft is on the way. phone

burriana

16,556 posts

284 months

Monday 26th March 2007
quotequote all
5LitreV8 said:
OK, I think this is what I will do. Tell the buyer not to prepare a bankers draft, but instead on the day of pickup, march him down to the bank and get him to get the draft made up in front of my eyes. Sad I know - and I'm pretty sure the guy is genuine, but I guess this is the world we live in.



That's what I would do and any reasonable person should not object too much.

morebeanz

3,283 posts

266 months

Monday 26th March 2007
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Phoning the originating branch is just as secure - they can confirm all of the relevant details to the point that you know it's not a fake.

Tripps

5,814 posts

302 months

Monday 26th March 2007
quotequote all
5LitreV8 said:
OK, I think this is what I will do. Tell the buyer not to prepare a bankers draft, but instead on the day of pickup, march him down to the bank and get him to get the draft made up in front of my eyes. Sad I know - and I'm pretty sure the guy is genuine, but I guess this is the world we live in.
If that's the case is it not worth just organising an electronic transfer of the funds when they visit their bank?

If you have the same bank, then you're sorted straight away, otherwise a TT or CHAPS payment could do the job. CHAPS is very quick so should be pretty damn safe, not sure if a TT can be cancelled in transit though...

dodgey_rog

2,025 posts

290 months

Monday 26th March 2007
quotequote all
morebeanz said:
Phoning the originating branch is just as secure - they can confirm all of the relevant details to the point that you know it's not a fake.


That was our company proceedure when accepting these, sometimes you can even speak to the person who issued it.

Never trust is as cash though, its true the bank can withdraw it at anytime.

5LitreV8

Original Poster:

1,261 posts

257 months

Monday 26th March 2007
quotequote all
Tripps said:
5LitreV8 said:
OK, I think this is what I will do. Tell the buyer not to prepare a bankers draft, but instead on the day of pickup, march him down to the bank and get him to get the draft made up in front of my eyes. Sad I know - and I'm pretty sure the guy is genuine, but I guess this is the world we live in.
If that's the case is it not worth just organising an electronic transfer of the funds when they visit their bank?

If you have the same bank, then you're sorted straight away, otherwise a TT or CHAPS payment could do the job. CHAPS is very quick so should be pretty damn safe, not sure if a TT can be cancelled in transit though...


I'm sure that makes sense. However, transaction will probably take place on a Saturday morning. So - chances of a bank making a call to another bank and being successful?

Re 'Chaps'. Yep - very good. However, is it not more expensive - and also, Barclays managed to 'loose' an 18K chaps transfer I set up once! eek

jagdpanther

19,633 posts

249 months

Monday 26th March 2007
quotequote all
There was a guy on Pistonheads that accepted a BD after his bank varified it, which turned out to be a load of bollox and now hes out £20K+

Dont accept them, save yourself some hassle

TurboTomato

331 posts

256 months

Monday 26th March 2007
quotequote all
burriana said:
5LitreV8 said:
OK, I think this is what I will do. Tell the buyer not to prepare a bankers draft, but instead on the day of pickup, march him down to the bank and get him to get the draft made up in front of my eyes. Sad I know - and I'm pretty sure the guy is genuine, but I guess this is the world we live in.



That's what I would do and any reasonable person should not object too much.


Exactly what I did when I sold my T350. Buyer agreed no problems.

profstoff

1,272 posts

257 months

Monday 26th March 2007
quotequote all
I have heard that a banker's draft is no more secure than a prsonal cheque because there are so many dodgy ones in circulation. When I bought the Griff recently I handed over a personal cheque and he gave me the car a week later when it had cleared. We had built up a degree of trust during the trabsaction so we were both happy with this arrangement. If I were selling a car I would not let it go on a banker's draft until I knew I had cleared funds in my account.

Tripps

5,814 posts

302 months

Monday 26th March 2007
quotequote all
As both bankers drafts and cheques can be dodgy and can potentially bounce weeks/months after clearing surely then cash might be the best fallback if paid in to you bank in their presence, as once it is in your account you are sorted.

If the bank banks the dodgy cash then I beleive they are liable as they should be checking it, would be interested in getting this confirmed though.

If doing transactions across banks, then if the buyers branch allows deposits to yours they could withdraw and you could deposit right there and then.

Tripps

5,814 posts

302 months

Monday 26th March 2007
quotequote all
5LitreV8 said:
Re 'Chaps'. Yep - very good. However, is it not more expensive - and also, Barclays managed to 'loose' an 18K chaps transfer I set up once! eek
I'm not sure how much more than drafts, as when I bought the V8S I was suprised how cheap a draft was these days, certainly worth the extra over the worry of carrying the cash around.

To be fair the Barclays could mess up anything, they've managed to forget to do transactions of mine in the past, while making up for it with mystery deposits too!

equinox

504 posts

252 months

Monday 26th March 2007
quotequote all
a.g. said:
TurboTomato said:
burriana said:
5LitreV8 said:
OK, I think this is what I will do. Tell the buyer not to prepare a bankers draft, but instead on the day of pickup, march him down to the bank and get him to get the draft made up in front of my eyes. Sad I know - and I'm pretty sure the guy is genuine, but I guess this is the world we live in.



That's what I would do and any reasonable person should not object too much.


Exactly what I did when I sold my T350. Buyer agreed no problems.


Either that or let it clear as you would with a standard cheque. i had one OKd by the bank once and got debited 8 weeks!!!!!!!!!! later as it transpired it was from a stolen book of drafts. Bank drafts are not really any better than a cheque these days IMO.


Thats right i have been told the same, expect the same clearance time on a draft as a personal cheque. SO.. go to the bank and pay the extra for a chaps transfer there and then.

Equinox