buying postal orders with a cheque and gaurantee card

jakemuk

this post is for a mate

hes in a v tight spot till end of the month, his cc's are maxed and needs about 80 quid to survive till then

he asked me if he could buy postal orders with his cheque gaurantee card and chequebook,

know i now you can pay for postal services as i do it regulary ?

but would they do it for postal orders ?

he plans to cash them in at another post office the next day ????

i advised not a gud idea because of bank charges but least i can do is ask for him

virgin_moneysaver

just so I got this clear - even if the post office will do this, is he going to keep the cash or is he going to put the funds into his bank account - either way, he'll be no better off once the cheque is banked & is debited to his account

jakemuk

plan was for him to cash them at another post office and keep cash

esalan

If he's that good a mate, why not ask him to write you a cheque for £80 dated 1 November and you give him the cash now. It would save a lot on bank/PO charges (but you might not get your £80 back!).

jakemuk

i would do but he already owes me money dont think hes good at budgetting i might lend him 40 though as i dont like to see people with nothing

starlite_2

can he not get a 'payday loan' with the money shop or similar?
it would probably work out cheaper than the amount he'd lose on the postal orders and bank charges.

jakemuk

yeah ive told him hes gona look tommorow hes had another idea though lol

if he pays me a cheque with guarantee number on back will it cash ?

newfoundglory

jakemuk wrote:

if he pays me a cheque with guarantee number on back will it cash ?

Yeah, but technically you would have to write the card number on the back of the cheque yourself, not him. Card number + expiry date.

Postal orders cost money... at a maximum of £20 per order at £1.30 each it would cost £5.20 in fees for £80 in postal orders.

Some banks + post office allow you to cash cheques using your gurantee card at the post office for free. Its a risk that it will be cashed almost instantly. He would be far better off getting/extending an arranged overdraft of £100 from his bank. This way you avoid bank fees. Even if the overdraft rate was high at say 15%, on £100 thats just over 4p interest a day... or about £1.24 to borrow £100 for 30 days!

jakemuk

ok i think to help him out ill let him write me a cheque with his guarantee number on it,i guess as it his the guarantee number on it card expiry etc it has to cash ? cus if hed paid in a shop for it then they would loose it would they not ?

M_Thomson

jakemuk wrote:

ok i think to help him out ill let him write me a cheque with his guarantee number on it,i guess as it his the guarantee number on it card expiry etc it has to cash ? cus if hed paid in a shop for it then they would loose it would they not ?

No, The cheque guarantee card is only good for shops when you buy stuff. Not for personal cheques.

jakemuk

how do you determine shops ?

ie made out to a company name ?