Bank Cheques - Are they safe?

[FGII-XR6]

Originally Posted by Brendo_GSUte

As for the insurance yes it will be covered as you have been defrauded/stolen from. It is usually easy to let them know whats going on and they will end your cover in 5 days or whenever you tell them the sale is official and you have handed over the car.

please don't pass off opinion for fact that could cost someone money. I have seen this happen before. the car was handed over using a dud cheque and he lost everything. the official response from the insurance company was you gave them the car therefore it is your problem. he took it to the insurance ombudsman and they sided with the insurance company. he lost a lot of money but the car was only a commy , no great loss

[b2tf]

In my experience I have always gone with the bank cheque option and never had a problem. I am about to pick up a new ute on Monday and will also pay with a bank cheque which the dealer requested.

I have sold one car on a weekend where the guy brought his laptop and did a funds transfer into my account in front of me, it then showed up in my account straight away (same bank) so I was happy to let it go.

[AU Mont]

yeah i cant see how car insurance covers dodgy deals, whether it be from the seller's incompetence, or the scammer's intelligence

But then again, its advice on the internets so it must be true !!

[STINKY NINJA]

This thread makes me want to run far away from bank cheques,cash is king!

[Auslandau]

I suppose some have the right to be cautious about things, especially today when fraud is ripe but really .... I accept bank cheques for my work. Had to do a bank run today, but wont accept personal cheques. They aren't that scary really but just a couple of things to point out.

If you are going to someones house to drop something off and they seem to be above board, what is the issue? You know where they live! Especially when you leave with their drivers license number as well. If someone is going to do a dodgy at their own home, to steal a car and to go to that extent to do so and they are that devious ..... why not just steal one off the street in the first place? No need to overthink things really

If someone asks to meet you at a servo to swap car and cheque, bit of a reason to be concerned.

Good to be cautious but really ..... the car is still covered with your insurance even if you exchange keys and cheques and it bounces. To be sure, check with insurer. The car will still be in your name ..... a police report ..... insurance claim ...... but totally doubt it would come to that!

You can also get a special clearance on the cheque. Costs about $20.00 and depending on bank can get funds next day.

To go to this extreme to steal a car???? Fraud is worse than car stealing ...... giving a faulty cheque is more serious than theft. Either they are dumb crooks or normal people trying to buy a car. Maybe I trust people too much but 99% of people are still decent. Be cautious of course ......... but you are delivering the car so the old saying comes into it .... "I know where you live ... "

[Crazy Dazz]

Originally Posted by xxx000

http://www.nab.com.au/wps/wcm/connec...nance/15/16/9/

have a read of this and you'll see bank cheques are not as safe as some have claimed

and it's from a bank website so isn't a personal opinion

NAB may refuse to pay the bank cheque only if the person presenting the bank cheque for payment: has not given value for it (e.g. the bank cheque is stolen); or has given value for it but at the time of doing so he or she knew NAB had not been paid for the cheque (e.g. that the cheque in favour of NAB had been dishonoured).

So the ONLY way you are at risk is if you “KNEW NAB had not been paid for the cheque.”

NB: As a general rule the only circumstances in which the bank will issue a Bank Cheque on receipt of another cheque is for real-estate settlements (or a few other very specific circumstances) and ONLY where it is drawn on a customer’s bona fide trust account. In those circumstances it is often necessary for a serious of “round robin” cheques to affect the settlement.

Originally Posted by au3xr6

the only real issue is a forged bank cheque. they do exist and significant thefts have been perpetrated using forged bank cheques. cash of EFT are the only truly safe methods of collecting funds on a large sale.
Some may say not accepting a bank cheque is being paranoid but the methods used for forging are both sophisticated and easily obtained. the odds are in your favour with a bank cheque from a major bank but you are not protected from fraud entirely

Yes, as I said, any idiot with a scanner and colour laser printer can forge a bank cheque.
If I was selling my TV for $500, and somebody said they would come around to collect it and pay me with a bank cheque, I would be sus. People HAVE gone on stealing sprees like that in Perth, with the suspicion being that their truck load of stolen goods was way out bush or out of state before anyone wised up.
So what, you think EFT will protect you from fraud? Guess again. If I obtain somebody’s internet banking details, or fraudulently access my employer’s accounts, and transfer you the money, upon discovering the fraud, the bank will gank it straight back.

The only thing that protects you from fraud is having your car insured against theft, and the knowledge that obtaining a car by bank-fraud is possibly the dumbest crime possible. Keep in mind that the OP is selling the car anyway, so he’s not going to be gutted as you might be having your rare pride and joy stolen from your garage

[Crazy Dazz]

Originally Posted by DASH GT

Nab did a bank cheque for me last week for $50,000 and the funds did not leave my account. I cancelled it 3 days later because I reneged on what I was buying.

Sorry, that is utter bollocks.
You're saying the bank GAVE you a bank cheque for $50k, for free?
So you could have gone to another branch and got another $50k bank cheque?
and another, and another?
Then withdrawn the cash?
Don't think so.
banks are uncaring and incompetant, but they aren't stupid.

If that were really the case, then you should have gone through with the purchase, since it would have been free.

PS: I'm off to open an account with the NAB, can you please tell me what branch it is that gives away free money?

In the modern era, your account always has two "balances," the one you can see, and the one you can have.
I can guarantee you if you obtain a bank cheque for the balance of the account, then SPRINT to the ATM, you won't be able to withdraw so much as $20. Many ATMs will give you both, so it will say balance = 50,000.00

...available balance = 0.00

[naddis01]

Gee, who would have thought a simple question would open such a large can of worms.

Just to clear a few things up...
The main issue is doing the deal when the bank isn't open so I can't just go to the bank and get the payment.
The buyer doesn't want to pay in full without seeing the car and I don't blame him. I would be the same.
Some have said I am crazy for offering to deliver. Have you tried to sell a car when you live in the middle of nowhere? If I didn't do that, I would guarantee 99% of people wouldn't have even bothered making an enquiry. I also don't like bending over for the dealer on a trade. I also want to get the maximum I can for my car.
I would be getting multiple forms of id.
I would be getting a deposit.
I don't want to spend 3 days in Melbourne while I wait for funds to clear.

Anyway, this may have all been for nothing as the lastest plan is to go on a week day.

Am I able to get instant funds by going to the bank or do I just get them to withdraw cash?

[MrEL]

You can get cash from the bank but you will have to tell the seller to give the bank 48hours notice that he will be removing that amount of cash.
Reason being is funnily enough banks don't have huge stockpiles of cash on hand due to robbery risk etc.
Most banks if you are withdrawing $5k or more you need to give them at least 24 hours notice that you will be doing so as they need to get the money bought in by Armaguard etc.

Personally I reckon the biggest issue will be having the buyer not trying to smash you down more in price , with the mind set of "he has travelled 450km , he wont want to return empty handed , Ill well and truly low ball him".

[naddis01]

Originally Posted by MrEL

Personally I reckon the biggest issue will be having the buyer not trying to smash you down more in price , with the mind set of "he has travelled 450km , he wont want to return empty handed , Ill well and truly low ball him".

I have that aspect covered.

[Yellow_Festiva]

So, if you go on a weekday then just go to a branch and do the transfer over the counter.

It may still take time for the funds to show at your end. If that really bothered you, open an account with the bank the buyer uses so at least you can inquire straight away that you hsve the money.

You then transfer the money into your regular account and close the account.

[xxx000]

Originally Posted by MrEL

You can get cash from the bank but you will have to tell the seller to give the bank 48hours notice that he will be removing that amount of cash.
Reason being is funnily enough banks don't have huge stockpiles of cash on hand due to robbery risk etc.
Most banks if you are withdrawing $5k or more you need to give them at least 24 hours notice that you will be doing so as they need to get the money bought in by Armaguard etc.

not quite so, if that was true they'd soon run out with a few decent withdrawals

a few hrs notice is plenty, they have the $ there at the branch but need to access it

done it many times

or just pick a branch that is busy enough and they'll usually have it available on demand if you push them a little

[LG17]

Originally Posted by naddis01

Gee, who would have thought a simple question would open such a large can of worms.

Just to clear a few things up...
The main issue is doing the deal when the bank isn't open so I can't just go to the bank and get the payment.
The buyer doesn't want to pay in full without seeing the car and I don't blame him. I would be the same.
Some have said I am crazy for offering to deliver. Have you tried to sell a car when you live in the middle of nowhere? If I didn't do that, I would guarantee 99% of people wouldn't have even bothered making an enquiry. I also don't like bending over for the dealer on a trade. I also want to get the maximum I can for my car.
I would be getting multiple forms of id.
I would be getting a deposit.
I don't want to spend 3 days in Melbourne while I wait for funds to clear.

Anyway, this may have all been for nothing as the lastest plan is to go on a week day.

Am I able to get instant funds by going to the bank or do I just get them to withdraw cash?

You are able to pay to get a fast clearance on the cheque - don't know how much it costs these days though.

[AU Mont]

there is a way to make a bank cheque clear immediately

you hire their branch manager to personally deliver the cheque to a branch of your bank.

very expensive exercise, but it is an option.

edit: NAB website suggests special clearance for bank cheque costs $70 per hour for a bank officer, plus costs........ like express courier for example.

[nuthin' fancy]

Originally Posted by xxx000

they can, and have, been bought by people with insufficient funds in their account and later not honoured

Utterly incorrect.

The problem with bank cheques is that they can be faked.

If they are paying with a withdrawal from their ANZ account, open an ANZ account get them to met you at the bank and have them transfer funds to your account then and there.

[xxx000]

Originally Posted by nuthin' fancy

Utterly incorrect.

The problem with bank cheques is that they can be faked.

If they are paying with a withdrawal from their ANZ account, open an ANZ account get them to met you at the bank and have them transfer funds to your account then and there.

I am aware of cases where banks have been scammed and issued bank cheques against funds that didn't exist, hence they cancelled the cheques.

Also if a bank cheque is issued but then reported lost or stolen and therefore cancelled it will of course be dishonoured on presentation

So the issues with bank cheques are:

they can be forged/stolen/altered/cancelled/dishonoured, apart from that they're fine

[flappist]

Ok, this is going in circles and every thing that needss to be said has been said.

closed