I'm selling my car on Thursday and I have just found out they are bringing a bankers draft and not paying by direct transfer like I wanted. This takes 3 days to clear except I need the money to put towards my new car on Friday morning. I've seen it on the telly where somebody endorses a cheque over to somebody else. Can I do that with this bankers draft and then use it to pay at the garage.
The amount we are talking about is just under 5k.
In message , snipped-for-privacy@alister.info writes
Technically yes you could, there is nothing legal to stop you - but trying to find somebody to do it, and a bank for them to pay it into to, is virtually impossible. Try and find out which bank the draft will be drawn upon. If it is the same as the bank which you bank at, even a different branch, then the bank will regard it as cash and allow you to draw against it straight away.
If you bank at one of the real banks (i.e. HSBC, RBS, Nat West, Barclays, ex BOS branches of HBOS, and Lloyds TSB) and the draft is also drawn on one of those then there is a good chance your bank will regard the draft as cash as well. If the draft turns out not to be a draft at all but a cheque drawn by the local branch of one of the pretend banks (i.e. Abbey, Halifax branches of HBOS, B&B, A&L, Northern Rock etc., or a building society) then unless also bank at the same place you are struggling.
Why not get them to get the draft payable to the person you are going to pay? It will sound all sorts of 'money laundering' alarms but it is quite a legitimate transaction. Check this out with who you are buying your new car off. If it is a reputable dealer then they will probably allow it but may have some requirements regarding the ID of your buyer. Check with them first.
and the draft maybe a dud. Tell them it a transfer or it's off
Surely this wouldnt apply because the Draft will be crossed a/c payee? Thats got me wondering now - will have a look at the book tomorrow.
Ian
In message , snipped-for-privacy@gmail.com writes
How would that stop the legal ability of the cheque to be indorsed to somebody else?
DONT DO IT!! A guy at work lost about 5k accepting a bankers draft for his car a few months back. The draft was forged or stolen, not sure which. They did catch the guy but the car was used in a robbery and damaged (write off) and his insurance arent paying up because he handed the keys over to the 'buyer'.
If they can get a bankers draft for 5k they can get cash for 5k or do a direct xfer bank to bank, so why are they doing this
Sounds extremely dodgy to me, dont let your short term desire/need for your new car override your common sense which is obviusly ringing alarm bells right now or you wouldnt have posted. Maybe its kosher, but why take the risk, especially as you asked for a direct transfer and they arent doing that? Unlikely to be as extreme as wanting a car for a robbery, probably just common honest theft they are trying :-)
Dont negotiate with them, say you want a direct xfer or its off.
Not off ebay I hope?
Some guy went to pick his car up COD and got mugged - all a setup.
Well I've bought a caravan and a car through ebay now and must say I am very happy with both of them. It was a bit daunting going away the first time to buy the caravan with thousands of pounds in an envelope. I had visions of being shown into a compound by men with Alsation dogs and pickaxe handles. Instead we found a very pleasant couple who took us in, gave us tea/coffee and threw in lots of extras like towing mirrors.
Ebay sell thousands of cars- there are bound to be some problems, but there are also bound to be some problems through any other distribution channel.
Neb
Assuming you have eliminated all worries in the scam department, you should not let the clearing delay worry you. I once bought a car for a few thousand more than I had in my current account, but had a cheque coming in with which to help pay for it. I took the cheque to my branch, paid it in, and asked if they could fix it so that I could draw against it tomorrow. They said No.
I had obviously asked the wrong question, but fortunately I thought of a better one on the spot. I asked if they could fix me up with a temporary £4000 overdraft in time for tomorrow. They said Yes.
That was about 5 years ago, and the bank still haven't removed the "temporary" overdraft facility.
My understanding was that as the item wont say "or order" and has a crossing that it couldnt be indorsed? Have I overlooked something? Ian
In message , snipped-for-privacy@gmail.com writes
I dont know of any crossing that prevents endorsement.
But there are crossings that restrict the legal rights of those people to whom it is endorsed. No crossing can stop endorsement. In conjunction with the absence of the words 'or order', all this means is that a holder such as a collecting banker can not assume the position of a 'holder in due course' which removes many rights of action on the draft. This is only a problem in the event of dishonour or fraud but is no problem in a genuine transaction in which the draft appears in order on the face of it, is taken in the normal course of business, in good faith, and for value.
All it means is that a subsequent holder of the draft can only sue the previous holder and not any other parties to the draft, such as the bank upon which it is drawn.
The features you describe do not *stop* or *prevent* drafts being passed to other parties, all they do is restrict the subsequent holders' rights to such a draft. It is matter for those subsequent holders to decide if they take that risk.
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