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Bank Draft question

  • 11-05-2006 1:16pm
    #1
    Guy:Incognito
    Registered Users, Registered Users 2 Posts: 38,247 ✭✭✭✭


    I'm meeting a guy tomorow whos buying a car off me. We're meeting at the bank and I think he wants to give me a bank draft. I just have a couple of quetions If he goes to the teller (I'd lie to actually see him getting the draft) and gets the draft, could I then be next in line and just cash it in, or will I have to lodge it/wait for it to clear?

    Once he gets it, is it possible for him to cancel it and reclaim thefunds to his account?

    It's going to be for €7000 so I don want to get stung.


    I'm meeting a guy tomorow whos buying a car off me. We're meeting at the bank and I think he wants to give me a bank draft. I just have a couple of quetions If he goes to the teller (I'd lie to actually see him getting the draft) and gets the draft, could I then be next in line and just cash it in, or will I have to lodge it/wait for it to clear?

    Once he gets it, is it possible for him to cancel it and reclaim thefunds to his account?

    It's going to be for €7000 so I don want to get stung.


    alternativly, is it possible for him to write me out a cheque to cash that I could go to his branch of ulster bank or another branch (his branch is clondalkin, i'll be meeting him in tallaght) of ulster bank and cash there and then. Or is teh amount too high?


Comments

  • #2
    okidoki987
    Registered Users, Registered Users 2 Posts: 10,632 ✭✭✭✭okidoki987


    No Bank will give you cash for a cheque made payable to cash nowadays due to the money laundering act, you have to lodge it into your account.
    Then you run the risk of a problem with cheque waiting to clear.
    If you go with him to the Bank and stand beside him when he's buying the draft, this will be fine.
    you could also get him to withdraw the cash in his bank and then you buy a draft payable to yourself in the same branch, (rather then walking around with 7k cash in your pocket), or lodge it if you both bank with the same
    Bank?

    Not sure if you are aware about scams with drafts?
    Just make sure you aren't asked to refund an overpayment on a draft to him.
    If you are, DON'T!


  • #3
    Guy:Incognito
    Registered Users, Registered Users 2 Posts: 38,247 ✭✭✭✭Guy:Incognito


    okidoki987 wrote:
    No Bank will give you cash for a cheque made payable to cash nowadays due to the money laundering act, you have to lodge it into your account.
    Then you run the risk of a problem with cheque waiting to clear.
    If you go with him to the Bank and stand beside him when he's buying the draft, this will be fine.
    you could also get him to withdraw the cash in his bank and then you buy a draft payable to yourself in the same branch, (rather then walking around with 7k cash in your pocket), or lodge it if you both bank with the same
    Bank?

    Not sure if you are aware about scams with drafts?
    Just make sure you aren't asked to refund an overpayment on a draft to him.
    If you are, DON'T!

    Yeah I plan to be with him in the bank. Just a bit concerned that he could decide to go back to the bank 10 mins later and cancel the draft, can he do that?

    I'm in bank of Ireland, how long will it take before the funds clear if I go straight to my bank and lodge it?


    Just thinking. will a draft have to be made out to sopmeone in particular? or just cash, because I'm going to look at a car on saturday that, assuming it's in good nick, I'll be buying, so can I just use the same draft as part-payment on the new car?


  • #4
    parsi
    Site Banned Posts: 5,904 ✭✭✭parsi


    okidoki987 wrote:
    No Bank will give you cash for a cheque made payable to cash nowadays due to the money laundering act, you have to lodge it into your account.
    Then you run the risk of a problem with cheque waiting to clear.
    If you go with him to the Bank and stand beside him when he's buying the draft, this will be fine.
    you could also get him to withdraw the cash in his bank and then you buy a draft payable to yourself in the same branch, (rather then walking around with 7k cash in your pocket), or lodge it if you both bank with the same
    Bank?

    Not sure if you are aware about scams with drafts?
    Just make sure you aren't asked to refund an overpayment on a draft to him.
    If you are, DON'T!

    If he makes the cheque out to you you can cash it at his branch. This is true for AIB (and AFAIK other banks). I did it last year when I was selling Mrs. Parsi's car.


  • #5
    Guy:Incognito
    Registered Users, Registered Users 2 Posts: 38,247 ✭✭✭✭Guy:Incognito


    parsi wrote:
    If he makes the cheque out to you you can cash it at his branch. This is true for AIB (and AFAIK other banks). I did it last year when I was selling Mrs. Parsi's car.


    So you reckon If I get him to write me a cheque I could just go to his branch (ulster bank clondalkin) and cash it there and then? That6 would be much handier and I'd get cash which I'd be much happier with.


  • #6
    parsi
    Site Banned Posts: 5,904 ✭✭✭parsi


    Best bet is to ring Ulster Bank and check if it's possible and then suggest that to yer man. You could sweeten it by telling him he can get the documents immediately etc etc.

    Also I suggest that you get him to sign the change of ownership form and then _you_ send it off. Give him a copy of course but make sure you send in the details. Just in case...


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  • #7
    Guy:Incognito
    Registered Users, Registered Users 2 Posts: 38,247 ✭✭✭✭Guy:Incognito


    Was just talking to my uncle, he has an ulster bank a/c so i can get the guy to transfer to his a/c so it'll be done instantly.


  • #8
    okidoki987
    Registered Users, Registered Users 2 Posts: 10,632 ✭✭✭✭okidoki987


    Don't use a cheque unless you would trust the person! :eek:
    Cheques can be cancelled!


  • #9
    nissan14
    Closed Accounts Posts: 17 ✭nissan14


    where can i cash a draft


  • #10
    Curly Judge
    Registered Users, Registered Users 2 Posts: 2,708 ✭✭✭Curly Judge


    Guy:Incognito wrote: »
    So you reckon If I get him to write me a cheque I could just go to his branch (ulster bank clondalkin) and cash it there and then? That6 would be much handier and I'd get cash which I'd be much happier with.

    Don't go down the cheque route unless you both bank in the same branch and the transaction takes place in that branch.
    Even then I would be very careful and only go ahead if one of the bank staff cooperated in full.
    It can take up to five working days for a cheque to leave one account and enter another. Plenty of time for him to do a runner.
    The bank draft is a much better way to proceed. If you clearly witness him getting the draft in the bank and he then hands that same draft to you, he cannot then "cancel" it. You cannot "cancel" a draft except by returning it to the bank upon which it was drawn and pay the transaction fees.


  • #11
    maxer68
    Closed Accounts Posts: 1,076 ✭✭✭maxer68


    nissan14 wrote: »
    where can i cash a draft

    You can't cash a draft. These are always crossed and have to go though the normal cheque clearance procedure (up to 5 days)


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  • #12
    GerardKeating
    Registered Users, Registered Users 2 Posts: 7,806 ✭✭✭GerardKeating


    Guy:Incognito wrote: »
    Was just talking to my uncle, he has an ulster bank a/c so i can get the guy to transfer to his a/c so it'll be done instantly.

    Even this is not totally "Safe", the Seller could (in theory, they might really be a nice person) have hacked someone's online banking and transfer the money to you this way, if this happens, the bank will just take the money back...


  • #13
    amen
    Registered Users, Registered Users 2 Posts: 2,781 ✭✭✭amen


    Sorry from reading this I am confused.

    In order to get a Draft from the bank the person buying the draft will have to give the bank cash then and there. They will not issue a draft based on a cheque unless perhaps the buyer has an account in that branch and the account is in credit. So either way the buyer had access to the physical cash and this is what you should ask for. There are loads of scams re Drafts.

    In theory though a draft is Cash in that a bank is meant to treat it as cash so that if I go into a bank and lodge a draft to my account for €5,000 I should be able to withdraw €5,000 immediately (or even ask for cash over the counter).

    In practice though banks tend to treat them as cheques.

    While drafts can be cancelled it is somewhat hard to do. There was a case involving an Irish Bank ( believe it was AIB) where a draft was issued as a downpayment for a transaction (draft was for 000,000s) but was lost in the post and several years later the couple had not received any money although the bank believe the Draft had not been cashed they were not really sure.


  • #14
    rainbowdash
    Closed Accounts Posts: 878 ✭✭✭rainbowdash


    okidoki987 wrote: »
    No Bank will give you cash for a cheque made payable to cash nowadays due to the money laundering act, you have to lodge it into your account.
    Then you run the risk of a problem with cheque waiting to clear.
    If you go with him to the Bank and stand beside him when he's buying the draft, this will be fine.
    you could also get him to withdraw the cash in his bank and then you buy a draft payable to yourself in the same branch, (rather then walking around with 7k cash in your pocket), or lodge it if you both bank with the same
    Bank?

    Not sure if you are aware about scams with drafts?
    Just make sure you aren't asked to refund an overpayment on a draft to him.
    If you are, DON'T!

    I'm not sure about the bit I've highlighted. I went with somebody to bank of ireland to buy a draft for €1000 the other day. I had €500 in cash and the other person had €500 in their account and withdrew it while we stood at the counter. We then gave €1000 to the same teller and said " €1000 draft please" and she said no can do, we had to lodge the €1000 first and then buy the draft, point being I think you can only get a draft if you have an account with the bank in question.


  • #15
    Duckjob
    Registered Users, Registered Users 2 Posts: 2,859 ✭✭✭Duckjob


    rainbowdash wrote: »
    I'm not sure about the bit I've highlighted. I went with somebody to bank of ireland to buy a draft for €1000 the other day. I had €500 in cash and the other person had €500 in their account and withdrew it while we stood at the counter. We then gave €1000 to the same teller and said " €1000 draft please" and she said no can do, we had to lodge the €1000 first and then buy the draft, point being I think you can only get a draft if you have an account with the bank in question.


    Yeah, AIB won't issue a draft in exchange for cash now, they'll only do it by debiting your account. Anti-fraud measure apparently. Don't know about the others.


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