Bank Cheques - Are they safe?

[naddis01]

Ok guys, I am selling my car at the moment and I have someone interested in it that lives in Melbourne (about 450km away from me). As part of the deal I said I would deliver it to them. I would like to make the return trip in one day on a weekend so payment becomes an issue. Obviously they don't want to hand over thousands of dollars to a stranger before seeing the car, so what are my options?

I have always thought that bank cheques are a safe form of payment however I have read on here a couple of times that this may not be correct. I thought the bank had to guarantee that the funds are available. Is this the case? Otherwise what are my options other than cash keeping in mind that the transaction may be done when the banks are closed?

[vbvbvb088]

I would ask seller to go this local branch of your bank and deposit. you confirm all in and ok.

[Crazy Dazz]

Hi, ex “bank johny” here. Bank Cheques issued by a major Australian bank are safe PROVIDED THEY ARE GENUINE. Don’t accept a “Bank Cheque” from a credit union or building society because they can be stopped.
The only risk with bank cheques is that they can be fabricated or occasionally stolen by somebody working in a bank.

Personally, when selling a CAR, I don’t see what the big deal is, I would be happy to accept a bank cheque. Especially if you have been to their house, seen where they live, and sighted their driver’s license.
What’s the worst that can happen? It’s a big elaborate rouse to steal your car? If the bank cheque turns out to be forged, you go to the cops. Your insurance pays out on the car, cops track down the purps and they go to prison for fraud, forging & uttering, and/or grand larceny.
NB: TOTALLY different to a personal cheque. NEVER accept one of those.

[GasoLane]

Originally Posted by Crazy Dazz

NB: TOTALLY different to a personal cheque. NEVER accept one of those.

What about one that comes with a set of Bilsteins ?

[Smoke Pursuit]

Bank cheques can be cancelled.

[Crazy Dazz]

Originally Posted by DASH GT

Bank cheques can be cancelled.

But NOT in the same way that a Personal or institutional cheque can.
A personal cheque is drawn against their personal account. They can put a stop on the cheque or simply not have enough money in their account, in which case the bank will dishonour the cheque. NO crime has been committed unless you can prove that they set out to defraud you. What you have is a promise to pay, and it becomes a contractual/civil manner.

A bank cheque has ALREADY been paid for by the purchaser and is drawn on the banks funds. The money is ALREADY gone from their account, so they cannot get it back. If they go back to the bank and claim to have lost the cheque, or that it got stolen from their handbag, etc, there is a convoluted process to go through, which partly involves waiting to see if the bank cheque is presented and if so was it by the valid drawee. A Bank Cheque is a promise to pay you from the BANK’S OWN funds. If you are the valid drawee and present the bank cheque in a timely manner, the bank will NOT dishonour the cheque.
Modern scanners and colour laser printers have OF COURSE given rise to an increase in people forging Bank Cheques, and I would be dubious about accepting a bank cheque for a TV or some other item I was selling on Gumtree. But assuming your car is insured, you have nothing to fear from criminal activity (except depending on your insurer loss of your excess.) A person who gives you a forged bank cheque commits a crime, no ifs, no buts, no maybes. If they want to steal your car for parts or to rebirth it in another state, it is far easier for them to yank it from your driveway, than to leave the police with a nice paper trail to follow.

The transaction of selling or buying a car involves at least some “good faith.” The buyer isn’t going to keep a large wad of cash at home, just in case you don’t turn up but instead send some of your bikie mates for a visit. Nor will they deposit cleared funds into your account, just in case you then yank back the transfer papers.

If you accept a big wad of cash for the car, how do you know it’s not counterfeit? (Something that is much harder to pin on the purchaser than a forged bank cheque.)
How do you know you want be followed home and mugged for the cash?
Or that the cops won’t nab you and take your money because you unwittingly sold your car to a drug dealer?

It pays to be cautious, and the OP has done the right thing asking the question, but going through life paranoid that everybody will rip you off at a moment’s notice, is no way to live.

[Smoke Pursuit]

Originally Posted by Crazy Dazz

But NOT in the same way that a Personal or institutional cheque can.
A personal cheque is drawn against their personal account. They can put a stop on the cheque or simply not have enough money in their account, in which case the bank will dishonour the cheque. NO crime has been committed unless you can prove that they set out to defraud you. What you have is a promise to pay, and it becomes a contractual/civil manner.

A bank cheque has ALREADY been paid for by the purchaser and is drawn on the banks funds. The money is ALREADY gone from their account, so they cannot get it back. If they go back to the bank and claim to have lost the cheque, or that it got stolen from their handbag, etc, there is a convoluted process to go through, which partly involves waiting to see if the bank cheque is presented and if so was it by the valid drawee. A Bank Cheque is a promise to pay you from the BANK’S OWN funds. If you are the valid drawee and present the bank cheque in a timely manner, the bank will NOT dishonour the cheque.
Modern scanners and colour laser printers have OF COURSE given rise to an increase in people forging Bank Cheques, and I would be dubious about accepting a bank cheque for a TV or some other item I was selling on Gumtree. But assuming your car is insured, you have nothing to fear from criminal activity (except depending on your insurer loss of your excess.) A person who gives you a forged bank cheque commits a crime, no ifs, no buts, no maybes. If they want to steal your car for parts or to rebirth it in another state, it is far easier for them to yank it from your driveway, than to leave the police with a nice paper trail to follow.

The transaction of selling or buying a car involves at least some “good faith.” The buyer isn’t going to keep a large wad of cash at home, just in case you don’t turn up but instead send some of your bikie mates for a visit. Nor will they deposit cleared funds into your account, just in case you then yank back the transfer papers.

If you accept a big wad of cash for the car, how do you know it’s not counterfeit? (Something that is much harder to pin on the purchaser than a forged bank cheque.)
How do you know you want be followed home and mugged for the cash?
Or that the cops won’t nab you and take your money because you unwittingly sold your car to a drug dealer?

It pays to be cautious, and the OP has done the right thing asking the question, but going through life paranoid that everybody will rip you off at a moment’s notice, is no way to live.

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.

I have sold cars by bank cheque several times. It does not worry me if they cancel it because I will report it stolen and then claim on insurance.

I always make sure I copy their licence before they take possession.

[cs123]

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.

Last time I did a Bank cheque with NAB the money left my account immediately.

[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]

Thanks Dazz. That is what I thought anyway but just thought I would ask the question.

[dannyxm]

Do not accept them at all.

As said, go down to the bank and get it with them at worst.

Insist on cash, or electronic transfer.

I work as a solicitor, I have represented a heap of people that give fake bank cheques or valid cheques then cancel them.

[05_ENFORCER]

You can accept a bank cheque from a major institution as stated.

Just retain the rego papers until the funds have cleared, then issue the transfer documents and the rego papers.

.

[xxx000]

bank cheques can be stolen, fake or cancelled

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

holding onto rego papers won't achieve much, hanging onto the car until funds clear is better

best to go to the bank with the buyer and get them to do a transfer into your account while you are with them. That way you get a receipt and confirmation from the bank itself and don't carry the $ around at all.

[T3ts50]

Originally Posted by xxx000

bank cheques can be stolen, fake or cancelled

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

holding onto rego papers won't achieve much, hanging onto the car until funds clear is better

best to go to the bank with the buyer and get them to do a transfer into your account while you are with them. That way you get a receipt and confirmation from the bank itself and don't carry the $ around at all.

A bank cheque cannot be bought unless the person buying the bank cheque has sufficient funds to buy the bank cheque. If a bank cheque is issued and presented, it cannot be cancelled unless the person who bought the bank cheque has returned the bank cheque to the bank.

[AU Mont]

Originally Posted by T3ts50

A bank cheque cannot be bought unless the person buying the bank cheque has sufficient funds to buy the bank cheque. If a bank cheque is issued and presented, it cannot be cancelled unless the person who bought the bank cheque has returned the bank cheque to the bank.

it can be cancelled under certain circumstances as has been mentioned a few times here already

What if they decide they immediately dont like the car & want to hand it back, then report the bank cheque as being stolen. Yes thats fraud, but thats what the OP is asking about.

a bank cheque takes 3 days to clear just like any other cheque, so the same caution should be taken imo.

[cs123]

Originally Posted by AU Mont

it can be cancelled under certain circumstances as has been mentioned a few times here already

What if they decide they immediately dont like the car & want to hand it back, then report the bank cheque as being stolen. Yes thats fraud, but thats what the OP is asking about.

a bank cheque takes 3 days to clear just like any other cheque, so the same caution should be taken imo.

As has been mentioned a bank cheque is the bank funds. If the purchaser were to cancel it or report it as stolen they will be in considerable **** and the cheque will still be honoured.

I agree with Crazy Dazz, you can get so paranoid about things that you become to scared to get our of bed some days. You have an insured car, you have their identification, you have a bank cheque. The chances of something going wrong for the seller are very, very low.

Funds transfers can be risky for the buyer. I have been in the situation where a over the counter funds transfer was claimed to not have been received by the recipient and that was a drama.

[AU Mont]

Originally Posted by cs123

As has been mentioned a bank cheque is the bank funds. If the purchaser were to cancel it or report it as stolen they will be in considerable **** and the cheque will still be honoured

Bank funds or not, cash is cash & cheque is cheque !!!

Everyone needs to stop classing both as the same thing because theyre not.

Bank cheque still takes 3 days to clear. Why dont you just call your local bank, and ask them simply is there any way to cancel a bank cheque then you can find out yourself instead of me trying to convince you?

And yes they would be in considerable **** but since when has that stopped anyone?

[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

[FrogInASock]

Given the THOUSANDS of cars sold every day, how many bank cheques bounce?

[Stefan]

I agree with Crazy Dass, Bank Cheques are safe an I have used them many times, buying and selling. They cannot be cancelled and they cannot have insufficient funds.

Stipulate it must be a bank cheque from a major bank. In addition to taking the bank cheque ask for 2 or 3 forms of ID.

When I bought my Territory the clown would not take cash, take the bank cheque, only EFT. I was on the verge of going somewhere else as he was being a drama queen.

[EASYBOSS]

Just keep a set of keys, then post them once the cheque is all good

[AU Mont]

Originally Posted by naddis01

Ok guys, I am selling my car at the moment and I have someone interested in it that lives in Melbourne (about 450km away from me). As part of the deal I said I would deliver it to them. I would like to make the return trip in one day on a weekend so payment becomes an issue. Obviously they don't want to hand over thousands of dollars to a stranger before seeing the car, so what are my options?

thats an ironic way to look at it.......... since your travelling a great distance to bring him the car, both parties would consider the car already sold, so why cant they deposit the money in full into your account before the trip?

someone bought my car from another state and had arranged CEVA car carrying to pick it up. Money was to be paid in full before it left my driveway, and thats how it should be in this case!!

they even deposited $500 less into my account thinking i wouldnt mind. Dont think so buddy

[Yellow_Festiva]

I have sold a few cars and stated clearly in any add that the car does not leave my possession till funds are cleared.

Hasn't been an issue.... But can become a can of worms if something were to happen to the car in those three days.

Stuff can be forged, and although the chances are slim I would never want to be the victim of some scumbag scammer.

Can you find a branch that is open on the weekend, agree to meet there and make the cheque on the spot, or do an eft in your presence?

[AU Mont]

also what if you drive all the way there, and find your name on the cheque has one or 2 letters mispelt. The cheque then becomes as useful as an empty packet of chips

[hawkgirl]

how about money order from Aus Post? Could this be an option? The funds have to be up front before the MO gets issued.

[FGII-XR6]

Originally Posted by hawkgirl

how about money order from Aus Post? Could this be an option? The funds have to be up front before the MO gets issued.

unless it is forged like I mentioned above with a bank cheque, nothing is guaranteed unless you get it validated first

[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

[Stefan]

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

This has already beem stated by Crazy Dazz almost word for word.

i.e. the risk is very small and the cheque cannot be cancelled.

So a crook needs to rob a bank to get the blank bank cheque and then goes out and buys a $15K second hand Falcon while handing over a few forms of ID in the process.....great scam...

Or better still crook goes to the bank, who has their details, get a bank cheque for 1,500 bucks then alters it to read $15,000 and buys your car....again not hard to follow up, go see the bank, police, RTA, Insurance company.

People are paranoid and probably better just stay indoors incase something happens.

AS i said I wanted the car there and then when I bough my Terry and rocked up with 25K cash and the seller freaked thinking it was forged and I'm a drug dealer.

Can't win....

[AU Mont]

Originally Posted by Stefan

People are paranoid and probably better just stay indoors incase something happens.

thats just a stupid comment, why bother?

whats wrong with waiting till the cheque clears & funds become available to you before letting the car go? Isnt that what this thread is about anyway? No-one is saying dont use bank cheques, just dont let the property go until its converted into cash...