Banker's Draft Advice Needed Urgently!

GhostDog_2
GhostDog_2 Posts: 239 Forumite
in Budgeting & bank accounts
Bankers draft received in post in payment for goods sold in online auction.

Yesterday - £20 paid to bank for "Special Presentation" of banker's draft and advised by bank that all appeared fine and transaction would be honoured.

Today - phone call from bank to say "unfortunately cheque that had been specially presented had not been received by drawer's bank." :eek:

Can anyone offer advice about this please? What does it mean?

Should I take action to stop progress of goods to purchaser? :confused:
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Comments

  • Xeno
    Xeno Posts: 39 Forumite
    Yes, immediately.
  • GhostDog_2
    GhostDog_2 Posts: 239 Forumite
    So the Special Presentation means nothing? :confused:
  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
    Name Dropper First Post First Anniversary
    It means that you have asked them to post it to the drawers bank and it has not got there yet.
    Don't release the goods until you get a reply.

    Unless the cheque is fraudulent it will be paid. Why did you get a 'special' on it?
    All you had to do was wait for 6 working days after you had paid it in and under the new rules it could not be debited back to your account.
  • ShelfStacker_3
    ShelfStacker_3 Posts: 2,180 Forumite
    GhostDog wrote: »
    So the Special Presentation means nothing? :confused:

    It means sod all. Contact the bank to get a refund, AFTER stopping the shipment of goods.
  • tarajayne
    tarajayne Posts: 7,081 Forumite
    Special presentation is a waste of money, the worst thing possible as your cheque is sent by post, it's better off in the banks TNT bag, and it can't clear any quicker anyway. Do not understand however why you did this on a bankers draft as this is guaranteed money, it is not like a cheque. When your buyer requested it from his bank they took the money from his account before handing him the draft, they currently have that money in their holding account therefore it is guaranteed to you, it does not need to clear just the time taken for bank to bank money transfer. Your bank was ripping you off taking £20 to present a draft.
    Too many children, too little time!!!
    :p
  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
    Name Dropper First Post First Anniversary
    The bank will not refund as they would not offer a special presentation unless asked. They have done what has been asked of them and most will stipulate in the terms and conditions that they cannot be held responsible for postal delays.
  • GhostDog_2
    GhostDog_2 Posts: 239 Forumite
    Paid for Special Presentation as it was a substantial amount of money and thought this would offer peace of mind :o

    The other thing that puzzles me is that my bank is showing the amount included in available balance in my account....so why does it make any difference if it has been received by drawer's bank or not? :confused:

    Am I being thick here? :o

    Thanks guys :beer:
  • Mikeyorks
    Mikeyorks Posts: 10,369 Forumite
    First Anniversary Combo Breaker
    GhostDog wrote: »
    Yesterday - £20 paid to bank for "Special Presentation" of banker's draft and advised by bank that all appeared fine and transaction would be honoured.

    They couldn't tell you 'it was fine' .... until it had been received by the drawer's bank. It is that bank which checks it is legitimate and will be funded (no doubt whatsoever if it was a Draft they had issued .. as it's guaranteed funds! Unfortunately there are some fraudulent / stolen ones knocking about) and then rings your bank to so advise.

    However ... after the affirmative call from the drawers bank it would be a foregone conclusion you would have the funds. On a normal cheque they would 'reserve' the funds at that point. On a draft .. it's the Banks funds, so they just go on to fund your account.

    Nothing you can do except wait for it to materialise in the post. But you owe it to your purchaser to explain the situation. Even though you've 'specially presented' it to the Bank that issued it ... if it is lost I can't see them just putting a Stop on and generating a new one in-house. They'll have to issue a fresh one to your purchaser for it to go round the circle again.
    If you want to test the depth of the water .........don't use both feet !
  • Mikeyorks
    Mikeyorks Posts: 10,369 Forumite
    First Anniversary Combo Breaker
    GhostDog wrote: »

    The other thing that puzzles me is that my bank is showing the amount included in available balance in my account

    Is your's one of the few banks that allows you to draw on cheques (up to £xx) immediately? Otherwise only explicable that the cheque was drawn on your Bank (but not Branch).

    But the funds will be negated if the cheque doesn't materialise.
    If you want to test the depth of the water .........don't use both feet !
  • tarajayne
    tarajayne Posts: 7,081 Forumite
    Because drafts are guaranteed the bank would have credited you straight away, if it is now lost it could change overnight so your balance could be different in the morning. From a customer service point of view, I only left banking last year and would have explained about drafts to any customer and always pointed out the risks of special presentation and royal mail reliability. Your draft may well reach the other bank in the morning, I can't see that you can do anything tonight, sorry! Would certainly be talking to your bank tomorrow though about their lack of customer care or basic banking knowledge.
    Too many children, too little time!!!
    :p
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