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  • FIRST POST
    GhostDog
    Banker's Draft Advice Needed Urgently!
    • #1
    • 11th Mar 08, 7:35 PM
    Banker's Draft Advice Needed Urgently! 11th Mar 08 at 7:35 PM
    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."

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

    Should I take action to stop progress of goods to purchaser? :confused:
Page 1
    • Xeno
    • By Xeno 11th Mar 08, 7:59 PM
    • 38 Posts
    • 14 Thanks
    Xeno
    • #2
    • 11th Mar 08, 7:59 PM
    • #2
    • 11th Mar 08, 7:59 PM
    Yes, immediately.
  • GhostDog
    • #3
    • 11th Mar 08, 8:05 PM
    • #3
    • 11th Mar 08, 8:05 PM
    So the Special Presentation means nothing? :confused:
    • jonesMUFCforever
    • By jonesMUFCforever 11th Mar 08, 8:28 PM
    • 22,017 Posts
    • 9,589 Thanks
    jonesMUFCforever
    • #4
    • 11th Mar 08, 8:28 PM
    • #4
    • 11th Mar 08, 8:28 PM
    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.
    What goes around - comes around
    give lots and you will always receive lots
  • ShelfStacker
    • #5
    • 11th Mar 08, 8:32 PM
    • #5
    • 11th Mar 08, 8:32 PM
    So the Special Presentation means nothing? :confused:
    Originally posted by GhostDog
    It means sod all. Contact the bank to get a refund, AFTER stopping the shipment of goods.
    • tarajayne
    • By tarajayne 11th Mar 08, 8:40 PM
    • 7,068 Posts
    • 28,277 Thanks
    tarajayne
    • #6
    • 11th Mar 08, 8:40 PM
    • #6
    • 11th Mar 08, 8:40 PM
    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.
    • jonesMUFCforever
    • By jonesMUFCforever 11th Mar 08, 8:42 PM
    • 22,017 Posts
    • 9,589 Thanks
    jonesMUFCforever
    • #7
    • 11th Mar 08, 8:42 PM
    • #7
    • 11th Mar 08, 8:42 PM
    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.
    What goes around - comes around
    give lots and you will always receive lots
  • GhostDog
    • #8
    • 11th Mar 08, 8:50 PM
    • #8
    • 11th Mar 08, 8:50 PM
    Paid for Special Presentation as it was a substantial amount of money and thought this would offer peace of mind

    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?

    Thanks guys
  • Mikeyorks
    • #9
    • 11th Mar 08, 8:59 PM
    • #9
    • 11th Mar 08, 8:59 PM
    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.
    Originally posted by GhostDog
    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

    The other thing that puzzles me is that my bank is showing the amount included in available balance in my account
    Originally posted by GhostDog
    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
    • By tarajayne 11th Mar 08, 9:05 PM
    • 7,068 Posts
    • 28,277 Thanks
    tarajayne
    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.
  • Mikeyorks
    If the drawer's bank is in London (or the post goes via London) ....1st class (which your bank would have used) inward is poor and often takes at least a couple of days.

    I'm trusting the draft wasn't drawn on an Irish bank?
    If you want to test the depth of the water .........don't use both feet !
    • PBA
    • By PBA 12th Mar 08, 10:51 AM
    • 1,509 Posts
    • 516 Thanks
    PBA
    Remember that a bankers draft is only guaranteed if it's genuine. I've seen very good forgeries of bankers drafts being presented. If OP is at all suspicious, it makes sense to pay for special presentation to be 100% sure before handing over goods.
  • Kairo2911
    Bankers draft lost?!!! Hsbc
    What a bad few days i have had- on the phone to the bank for hours daily.
    I was paid for a car by bankers draft-have seen buyers I.D etc and i went to my HSBC local branch and paid it in over the counter (last friday)
    The draft wasmade out by a bank account in Dublin as this is where the family i have sold the car to reside (i have met them!)
    anyway:
    i put the bankers draft into my account and was told it would clear in 3 days but it was a good idea to leave drawing on it until Monday (6working days!) fine by me..
    I then got concerned as it wasn't showing in my account (normally it would but would not show as cleared funds-until it was cleared.)
    please note: the buyer will not be picking the car up until the funds are cleared....
    so i called the bank and they had no record of me paying it in..
    then i get passed from person to person (like you do!) and was told the branch i paid it into would contact me -THEY NEVER DID. I called hsbc again and got fobbed off with "they may just be trying to trace it before they credit it to your account" NOT GOOD ENOUGH FOR ME-AS THEY CAN'T EVEN RECALL RECIEVING IT!

    im going mad here.....
    I then had a man from their head office call me to say that the bank were not aware it was made out by a "foreign" bank???? and therefore it will take up to 8 WEEKS TO CLEAR???????

    THIS CANNOT BE RIGHT!? I HAVE CHECKED EVERYWHERE ONLINE.
    the general information i am getting is that they clear in the same way a cheque would 3working days but its best not to draw on them for 6days-if i recieved a cheque fromoverseas the clearing system would be no different right?

    Now i have buyer on my case as the original date of clearance was next monday NOW???? god knows because the bank once again are trying to fob me off? or are they????
    How long does a bankers draft take to clear??? or to at least show up in your account??

    the buyer has the funds in hold until its clear so 8weeks seems a ridiculous amount of time....

    someone please give me input on this as i am pulling my hair out.
  • rb10
    A bankers draft is just like any other type of cheque.

    Was it written in Euro or Sterling?

    If Euro (or any currency other than sterling), then they are correct in that it will take up to 8 weeks to clear, as it has to be sent back to Ireland before the paying bank can agree for it to be paid, as it will not have been drawn on a bank that is part of the UK clearing process.

    If it was written in sterling, then it should be showing as part of your available balance within three working days, and cleared for certain after the end of the sixth working day (where the day you pay it in is Day 0). This is because although the bank in Dublin will have written it, it will actually be drawn on their 'partner' bank in the UK, and it will go through their clearing cycle.

    ---------

    Edit: Sorry, should have said that it will show on your available balance in four working days if it's a sterling cheque. My bank do it in three, so I always forget that most others take 4!
    Last edited by rb10; 09-12-2009 at 5:32 PM.
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