Bank Draft question

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stekelly

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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.


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?


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?
 
Be very careful. There are many scams going on involving real or forged bank drafts. In spite of what some people assume bank drafts are not as good as cash. If he can afford the bank draft then why doesn't he give you hard cash - ideally at your bank so that you can lodge it immediately?
 
I'll be meeting him at the bank so I will see him getting the draft, my main concern is him being able to cancel it. I'll be talking to him in the morning and will try get him to get cash, would he have to give his bank notice of taking out that much or can he just go in and get it?
 
This is still very risky. Why not get him to hand you cash and you lodge it to your account there and then?

I can't see there being any problem in accessing €7K in one go without prior notice to the bank. If it was over €10K (or €12.7K?) then the normal money laundering checks would probably apply.

I believe that drafts must be made out to a specific payee, that they can be cancelled and that they can take time to clear.
 
stekelly, are you saying that this guy also banks at Bank of Ireland? Is he going to pay for the draft from his own account? Or pay cash for it? (in which case, as ClubMan has pointed out, why not just give you the cash in the first place?) Maybe he wants a draft as his own proof of the payment? (in which case, why not just have the bank photocopy your lodgement receipt and you add a handwritten 'I, stekelly have today received €7,000 from Mr Draft Guy for vehicle Make & Model, reg. no. whatever...'?)

Sorry to answer your question with six others!
 
Get him to do a credit transfer or use a giro. Why does he want to use a draft and not a cheque book? How does he propose to fund the draft? If he has the cash, let him give it to you in another manner.

It's sad that drafts attract so much suspicion these days, but such is life.
 
He's with Ulster Bank and wants me to meet him either at his branch (clondalkin) or tallaght (close to my job, as I'll be on my break). I assume he's going to draw the draft from his account.


I have met him 3 times to view the car and he's inspected in pfairly thouroughly. He gave me his card the first time (he has a security firm or some such)and lives in clondalkin (although I dont know the exact address) He owns a shop in inchicore (I met him near it, so dotn have actual proof he owns it). He's said since the star that it's for his wife's B/day this saturday. Maybe I'm being too paranoid (can anyone afford not to be?) but I just don't liek the idea of a draft.
 
Get him to electronically transfer the money into your account and get a printout from his bank to say the money has been transferred ( be there yourself to see it). I would be very wary of any bank draft being handed over for such a large sum.
 
ShaneMc said:
Get him to electronically transfer the money into your account and get a printout from his bank to say the money has been transferred ( be there yourself to see it). I would be very wary of any bank draft being handed over for such a large sum.
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If we go into the bank and arrange a bank transfer, woudl there be any way for him to reverse it after I left?


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?
 
stekelly said:
If we go into the bank and arrange a bank transfer, woudl there be any way for him to reverse it after I left?
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Not that I can see. He'd have personally authorised it by signature in front of a UB employee; it would be impossible for him to claim that it was an error or that he'd been in some way defrauded.

Afaik, drafts are usually fully cleared within a week or two. If he charges the draft to his UB a/c they're going to check he has €7,000 there before writing him the draft, and they'll debit it from his a/c the same day. I just can't see why he doesn't do a simple credit transfer directly to your own BoI a/c — @75c instead of €3.50 (or whatever UB charge for a draft?)
stekelly said:
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?
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Nope. You'd have to lodge it to an (UB) account.
 
DrMoriarty said:
Nope. You'd have to lodge it to an (UB) account.
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There'd still be the risk of him cancelling it?

Actually, just thinking, I might know someone with an ulster bank account, if I get him to transfer it to that it would go through instantly would it not? *EDIT, they're in PTSB, dammit

I'll just have to insist on cash, it's teh only way I'll feel comfortable.
 
I know it's a bit drastic but how quick and easy could I open a bank account with ulsterbank?

It's been 9 years since I opened my boi account and all I did was go in and fill out a form, but I believe it's different nowadays.
 
DrMoriarty said:
I think maybe you just don't really want to sell that car...
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i would'nt mind, it's not even my car, it's the missus'. She really does though, shes been going on about gettin a new car for weeks now.
 
Just found out my uncle is with UB so I'm going to ask him if I can "rest" the funds in his account. The guy now has an option of cash of Bank transfer, cant see why he'd have a problem/
 
I don't see why you need a UB account for this. Immediate electronic bank transfers can be effected between accounts in different banks and the charges should not be onerous. Just get him to electronically transfer the money to your account and then ring your bank to confirm that the money is there/cleared and cannot be subsequently stopped. I don't think it's paranoia to have concerns about the risks involved in other payment mechanisms (e.g. drafts) here - just prudence.
 
when I didn a bank transer to my g/f through banling365 it took 2 or 3 days to hit her aib account. Is it instant if I do it in-bank?
 
As far as I know an electronic/wire transfer and a bank transfer may be different things with the former taking immediate effect and the latter taking up to a few days. The electronic/wire transfer may cost a bit more than a normal bank transfer.
 
get the draft, phone the issuieing bank to ensure that is is genuine lodge to yoru account and hand over the keys!

If you phone issuing bank with draft number, they will be able to tell if it is enuine or not. As far as I know, a draft cannot be cancelled - it is treated the same as cash
 


Thats the thing, i'll be there to see him get the draft, but a draft can be cancelled, i know because i've done it before. I was buying a phone on ebay and the guy stopped replying a couple of days after Isent the draft, so after about 4 days i cancelled it and got my money back.
 
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