Credit union cheque

Phil824

Does anyone know how safe credit union cheques are? I have someone looking to buy my car and he asked would it be possible if he were to use a credit union cheque? He said that they are the same as a bank draft with other banks in that you have to have the funds available in the credit union account for it to be issued? If this were true would it be possible for him to remove the funds from his account after he hands over the cheque, so as the cheque would ultimately bounce? Or would the funds be gone from his account prior to this similar to a bank draft?

quadrifoglio verde

Phil824 wrote: »

Does anyone know how safe credit union cheques are? I have someone looking to buy my car and he asked would it be possible if he were to use a credit union cheque? He said that they are the same as a bank draft with other banks in that you have to have the funds available in the credit union account for it to be issued? If this were true would it be possible for him to remove the funds from his account after he hands over the cheque, so as the cheque would ultimately bounce? Or would the funds be gone from his account prior to this similar to a bank draft?

I wouldn't accept cheques or bank drafts if I'm selling a car, too easy to forge.
Cash, or transfer at the bank

bodhi085

I have zero experience with credit union cheques but why does the buyer want to pay by a cheque? Surely it takes the same time to go into the credit union to get the cheque as it is to simply withdraw the cash. Sounds dodgy to me.

kbell

Go with him to his credit union and get him to withdraw the cash as you stand beside him.

uck51js9zml2yt

bodhi085 wrote: »

I have zero experience with credit union cheques but why does the buyer want to pay by a cheque? Surely it takes the same time to go into the credit union to get the cheque as it is to simply withdraw the cash. Sounds dodgy to me.

Its often a case that the CU doesnt have the cash on the day. PTSB will honour CU cheques up to €5k and cash them for the member.
Tell him to cash it first.

Phil824

He wants to pay by cheque because his main deposit account is in the credit union. And supposedly the credit union does not do bank drafts. He was saying he doesn't want to carry such an amount of cash ~10k which i can see why. But he was going to spin down after work therefore the credit union will be closed at that time so I cannot stand over him in the credit union while it is withdrawn. But that is too risky on my side, with that amount of money. I might ring the credit union tomorrow to see if they can do some sort of transfer or guarantee.

Enright

A credit union cheque is as good as a bank draft, its drawn on the credit unions own account.

emer_b

I recently withdrew a large sum of money from the credit union with the intention of giving it to someone else. I wanted it in cheque form but they could only make the cheque payable to me, the account holder, so I had to lodge it with the bank and then transfer to the other person.
They also only issue cheques for amounts over €5k. May be different policies at different branches.

Oryx

Enright wrote: »

A credit union cheque is as good as a bank draft, its drawn on the credit unions own account.

Unless its fake.

Itsdacraic

bodhi085 wrote: »

I have zero experience with credit union cheques but why does the buyer want to pay by a cheque? Surely it takes the same time to go into the credit union to get the cheque as it is to simply withdraw the cash. Sounds dodgy to me.

If you are getting a special rate car loan from a Credit Union they will insist on giving you a draft made out to the seller of the car.

slimjimmc

Enright wrote: »

A credit union cheque is as good as a bank draft, its drawn on the credit unions own account.

Bank drafts can be forged just like cheques. Neither method are risk free.

dudara

Not a Consumer Issue. Moved to Banking & Insurance & Pensions

dudara

Henry Ford III

slimjimmc wrote: »

Bank drafts can be forged just like cheques. Neither method are risk free.

But if you check the authenticity of the draft with the issuing bank all should be well.

unclebill98

It is not the same as a bank draft.

One big difference is

If a bank draft is reported lost, so he has your car and is now trying to cancel the draft he must sign a form declaring he has lost it. However, if the draft is presented for payment by the rightful person with who it was meant to be for it must be be paid and his bank will pay it and deduct the money from his account. The same safe guards do not apply to the CU chq.

Most CU these days have strict limits on the amount of cash you can get without notice and some even with notice its much less than 10k.

The safest option is a bank transfer or cash. These are the only ways to ensure you can not get screwed over.

Phil824

Thanks for all the replies everyone
I rang up the credit union that he is a member of. The manager of the credit union assured me that he is an upstanding person and has dealt with them for years. Although the CU was unable to tell me if he had touched his bank account. They kind of hinted to the fact that all was ok with the cheque. Also prior to the funds being swapped. I took a photocopy of his account statement from the CU showing the amount taken out, along with copies of his passport and driving license just incase.

I think with these precautions most people should be ok with this method of payment.

Ziycon

Just to point out, not sure in this case but there is a scam on the go where people will pay by CU cheque or other forms of cheque for cars and in turn the cheques turn out to be fake and at that stage the cars gone and the buyer can't be contacted, just be careful.

Not sure if I agree at all with UncleBill98, unless you have a good note checker!! There are forged notes in place right now too. If you are given a cheque from a Credit Union, and its payable to you, then you might like to ring the Credit Union and ask to speak to the person who signed the cheque. Quote the cheque number and ask for an assurance that the cheque will be met. Put the buyer on to the CU first if needed. It is not a good idea to walk around with a large amount of cash. I would be wary of accepting a large amount of cash, for lots of reasons.
Don't forget, the CU cheque is drawn on the CU, not the individual member, so there will always be funds in the bank to meet the cheque.

unclebill98

Phil824 wrote: »

Thanks for all the replies everyone
I rang up the credit union that he is a member of. The manager of the credit union assured me that he is an upstanding person and has dealt with them for years. Although the CU was unable to tell me if he had touched his bank account. They kind of hinted to the fact that all was ok with the cheque. Also prior to the funds being swapped. I took a photocopy of his account statement from the CU showing the amount taken out, along with copies of his passport and driving license just incase.

I think with these precautions most people should be ok with this method of payment.

How the hell did you get information?

unclebill98

George Bernard wrote: »

Not sure if I agree at all with UncleBill98, unless you have a good note checker!! There are forged notes in place right now too. If you are given a cheque from a Credit Union, and its payable to you, then you might like to ring the Credit Union and ask to speak to the person who signed the cheque. Quote the cheque number and ask for an assurance that the cheque will be met. Put the buyer on to the CU first if needed. It is not a good idea to walk around with a large amount of cash. I would be wary of accepting a large amount of cash, for lots of reasons.
Don't forget, the CU cheque is drawn on the CU, not the individual member, so there will always be funds in the bank to meet the cheque.

The CU can not give you this information. Also the chq is crossed so you can not cash it and be told at the counter.

Henry Ford III

unclebill98 wrote: »

The CU can not give you this information. Also the chq is crossed so you can not cash it and be told at the counter.

Let's simplify this a tad:-

C.U. customer wants to pay you for goods. You tell them you'll be verifying the authenticity of the cheque with the issuing C.U. and to tell the Manager expect your call.

Buyer gives you the cheque. You call the Manager, quote the customers name, cheque number, your name and the amount, and verify it's authenticity.

What's wrong with that?

Fred Swanson

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Rob Thomas

There is nothing wrong with the CU manager speaking with anyone if the member has asked them to do so. Beyond giving a basic assurance as to the validity of the client, they are doing little more than giving the OP a small bit of peace of mind, probably with the blessing and fore notice of the member in this case. The decision to proceed with the deal was still the OPs. Data protection is only an issue if the member's right to privacy is abused or if specific confidential information is given out relating to them. Both unlikely in this case.

unclebill98

Fred Swanson wrote: »

This post has been deleted.

yes, that....

Henry Ford III

Fred Swanson wrote: »

This post has been deleted.

Don't think so. C.U. customer will have instructed C.U. Manager to release the information.

Seller states cheque number.

No issue there surely?

Peterd66

I am opposite, buying rather than selling and need to pay with funds in the credit union. Did the CU make the cheque out to you or to the buyer? if the buyer how did they transfer over to you.

Peter

Manofthewest

If someone is paying by a credit union cheque they have withdrawn the funds from there own account and the cheque in turn is drawn on the credit union bank account, which is typically held with either AIB or BOI. There should be be very little risk.

The credit union wouldn't be giving him a cheque unless he has the money in the first place.