Sterling bank draft lost in post

vector

I posted a sterling bank draft (issued by BOI) to a guy in England,
over 6 weeks ago. He says he never received it (I trust him)

Post of a normal envelope to England takes 3 weeks at worst, so it is safe to say it is lost.

Will BOI refund me the amount I paid for the draft, it was about £200 (that is eur290) which is alot to lose.

I remember there was something in the irishtimes a hile back about a couple who bought their house for eur150,000 or something higer by draft which was lost and they have to wait 7 years for a refund from AIB?

Aquos76

you would have been given a receipt when you got the draft. Go to the bank and get the draft cancelled. They will be able to tell you if it has been cashed or not. They will ressue you with a replacement of they will offer you a refund less commission afaik....

vector

Leonard wrote:

you would have been given a receipt when you got the draft. Go to the bank and get the draft cancelled. They will be able to tell you if it has been cashed or not. They will ressue you with a replacement of they will offer you a refund less commission afaik....

I am a student so paid no commission

I don't have the receipt fob, but I do have the withdrawl recipt, and a colour photocopy of the draft itself showing the entire area including the MICR.

However a refund sounds too good to be true.

Aquos76

Why does a refund sound too good to be true. All you are actually doing is buying a cheque. Therefore if the cheque/draft is not cashed you are entitled to your cash back. Is as simple as that.

vector

Leonard wrote:

Why does a refund sound too good to be true. All you are actually doing is buying a cheque. Therefore if the cheque/draft is not cashed you are entitled to your cash back. Is as simple as that.

Cheques can be cancelled, yes. We have all heard of someone losing their cheque book and cancelling it, for a price of course!

But do you have any empirical information on drafts, or are you assuming that drafts are the same by extension?

Pataman

Because drafts as guaranteed by the bank, it is unlikely they will refund. You will have to sign an indemnity to protect the bank, and they will reissue it, subject to it not having been cashed. Not sure what the position is because you are a student(enough in account to indemnify them). In my business this happens sometimes, sign the form and that is usually it.

seamus

Yeah, the bank will reissue the draft, but as Pataman says, you'll have to indemnify for it. That is, if the original one is found and cashed by someone in the UK, you'll have to pay the €200.

With that couple buying the house, and AIB, iirc the problem was that they had to indemnify the bank against the draft being cashed, but since they had no collateral, they would have had to wait until the draft expires (which is the 7 years afaik) to claim their cash back.

A Dub in Glasgo

My dad sent a draft to me recently and it took 12 days to get here. during that time my dad was panicking as it was a £1,330 draft which cost 1,910 euro so he went into the AIB branch and they explained that once they checked it was not cashed, they would refund the money and cancel the draft. I assume he would have to sign something to say the money would be owed if the named person on the draft cashed it in. It would be the accepting banks fault if the person who cashed it into their bank was not the named person as the draft is issued to account payee only and not negotiable.

nlgbbbblth

A Dub in Glasgo wrote:

My dad sent a draft to me recently and it took 12 days to get here. during that time my dad was panicking as it was a £1,330 draft which cost 1,910 euro so he went into the AIB branch and they explained that once they checked it was not cashed, they would refund the money and cancel the draft. I assume he would have to sign something to say the money would be owed if the named person on the draft cashed it in. It would be the accepting banks fault if the person who cashed it into their bank was not the named person as the draft is issued to account payee only and not negotiable.

1) in Ireland cheques crossed "Account Payee only", "& Co" or two lines like so // are endorsable to a third party

2) cheques crossed "non negotiable" are not

i.e. Bank has full protection under Cheques Act 1959 if it accepts an endorsed crossed cheque as in 1) above

re the sterling draft

the Bank you bought it off will check to see if it is still "outstanding" i.e. not cashed.
It will then place a stop on the draft [to do this takes a few days as they have to notify the UK Bank the draft is drawn on - in case of UB this is Nat West]
it will issue a replacement draft providing you sign an indemnity which basically states that if the original is cashed you will "indemnify" the Bank.