Jasper
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| posted on 29/12/07 at 02:06 PM |
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Be Warned - Bankers Drafts can be stopped....
Well, this was new to me, I just had it confirmed from the business section manager at Barclays that bankers drafts are no more secure then a personal
cheque. They CAN be stopped by the issuer, and they take the same time to clear as a normal cheque, so they are no safer than taking a personal
cheque.
And don't think your safe if you go with the issuer and pay it in your bank, it can still be stopped.
Suprised? So was I, so what is the point of them? Just a good way for banks to make an extra £20 from issuing them.
I banked a bankers draft for £10k before Christmas from the sale of a vehicle. A week later I had a letter from Barclays saying the cheque had not
been honored because they LOST it - yes really. The issue and I have the same bank - Barclays. They then told us the cheque had been stopped. Luckily
I sold it to a reputable garage who have been great, they told me the money was already out of their account and they definitely had not stopped
it.
Turns out the whole thing was just a Barclays cock up from the start, and they are still trying to sort it out. We've told them we want £200
compensation or we'll close all our accounts including the business ones.
Tossers.....
If you're not living life on the edge you're taking up too much room.
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Paul TigerB6
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| posted on 29/12/07 at 02:13 PM |
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As far as i am aware a bankers draft is issued by the bank and is drawn directly from the account of the bank and so only they can stop it. Sounds
like a bit of a story from the bank to try and cover their cock-up
Personally i'd still look to have cleared funds just in case the cheque was stolen.
[Edited on 29/12/07 by Paul TigerB6]
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oliwb
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| posted on 29/12/07 at 02:19 PM |
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Not sure how Barclays work it but with the bank I work for (HBOS) we can stop bankers drafts but only at the request of both the person who we issued
the draft to and also the payee on the draft itself. The only reason we can do this is so that if a draft is lost in the post they can both request
it be cancelled and a new one can be issued. HBOS also don't charge for a draft unless its from an account that has a cheque book in which case
its £12. But to be honest most people realise and transfer the money to a savings account and then ask us to issue one (ie. free) Might find that
its the same with other banks.
Moral of the story, some drafts are trust worthy others aren't! Oli.
If your not living life on the edge you're taking up too much room!
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Paradoxia0
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| posted on 29/12/07 at 04:41 PM |
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When I sold my car I looked into this.
Bankers drafts can be stopped, and the funds can be withdrawn from your account again with enough grounds (the same way a personal cheque can), i.e.
it is suspected stolen, fraudulent etc.
I was thankful that the guy who bought my car asked if he could pay cash!
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RazMan
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| posted on 29/12/07 at 05:25 PM |
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Strange, but when I got the Barclays to write a draft (I bought a car) I was given my balance of the account which showed the draft as a withdrawal.
They also told me that the draft was as good as cash - if I lost it I could not cancel it.
Cheers,
Raz
When thinking outside the box doesn't work any more, it's time to build a new box
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Paradoxia0
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| posted on 29/12/07 at 07:48 PM |
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It appears only some banks will allow the to be stopped...
They are "good as cash" as they will not be raised if the funds are not available, and as the funds are marked as drawn as soon as the
draft is raised the funds cannot be withdrawn before it is banked.
But BEWARE that
Bankers drafts may be
FAKE - most people aren't familiar with these things anyway; they're far easier to duplicate than a bank note. Check with the bank that
issued the draft to make sure it is genuine.
STOLEN - again check with the bank to make sure the person presenting it is the owner.
STOPPED - in theory the draft is as good as cash; in reality some banks seem to allow drafts to be stopped like a normal cheque.
For all the above reasons, DO NOT release your goods until you are sure payment will be made. Just having the draft in your hand does not mean that
payment is guaranteed.
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