Bank Draft

S

Slim

Guest
I needed a sterling draft today so I rang my bank, NIB. I told them I would be bringing in a Credit Union Cheque for the amount and asked if I coiuld have a stg draft? Yes, I was told, but they would charge me interest at 16.5% on the cheque until it cleared. The CU did not have enough cash to give me at short notice(should have asked earlier in week) The cost of the draft varied from NIB, BOI & AIB. AIB was cheapest, BOI was + €172, NIB was + €360. Luckily I was able to get the AIB (bankers to the CU) to change the cheque to cash. However, as I am not a customer, they would not sell me a draft. Went across the street to BOI where I am a co-account holder(not my main account) and they sorted me out. I saved €188. Money Laundering must be stopped but I had ID and an invoice from the UK!

Slim 8)
 
I didn't realise that you couldn't buy a draft for cash. That's interesting. Now that you mention it I did buy a large draft a couple of years ago from a different branch of AIB than my own, and they would only sell me the draft after they had called my branch and spoken to the manager.

AIB do tend to be cheapest for Foreign Exchange. Even during the supposed overcharging period they were usually the cheapest around. A point that didn't get as much coverage in the media as you might have expected.

-Rd
 
NIB again.

Why NIB would charge you 16.5% on your credit union cheque until cleared is beyond me? When they sell a draft THEY have the use of the money until it is cashed don't they.
In you case they don't have the use of your money because the credit union cheque is not cleared but then again they don't actually "pay out" until your draft is cashed.
I would check this one out with Bernie Grogan at the Irish Financial Services Regulatory Authority, P.O. Box 9138, College Green, Dublin 2. Phone 4104000.
 
Re: NIB again.

I didn't realise that you couldn't buy a draft for cash.
Click to expand...

That was not the problem. I could get a draft for cash but AIB would not sell me a draft because I was not a customer, although I had ID, Phone bill and an invoice from the UK! BoI only gave it because I am a joint account holder there. I could have taken cash back to NIB but they were the dearest!

In relation to the clearing of the cheque, I guess that's what banks do.

s
 
Re: NIB again.

I could get a draft for cash but AIB would not sell me a draft because I was not a customer, although I had ID, Phone bill and an invoice from the UK! BoI
Click to expand...

That sounds harsh. Judging by the charges you posted I'm guessing this was a draft for a sizable sum of money.
Would you mind posting roughly the amount?

-Rd
 
draft

I had no cheque book untill the last two years or so, and ran into this problem when the banks started this a few years ago. The problem seemed to start when some people went in and bought a draft for cash, then altered the amount on the draft and cashed it elsewhere. As they had just walked into the bank, the bank had no way of tracing them. The policy on drafts was changed so that only account holders with the bank can purchase drafts, as the bank then has a 'comeback' if there are problems. It's not a money laundering issue as such. (that's how it was explained to me anyway)
 
Re: NIB again.

daltonr,

The draft was for stg£10,950. Price in NIB was €16,661, BoI was €16,473 and AIB was €16,302. This was on the 27th aug.

Slim 8)
 
You must log in or register to reply here.
Back
Top