Help!!!... Confusion about bankers drafts and express clearance

richy_no1

Hi guys... to cut a long story short.... ive bought a used car (privately) and paid by bankers draft... the seller won't give me the car until the draft has clears (because apparently they can still be cancelled even after they have been ....... news to me!? ). We were with their family whilst one of them went to bank the draft.

They banked the draft with Natwest, and they paid £10 (or so) to have it express cleared. They said that they would call them once the funds will be guaranteed to be entering their account.......This was yesterday afternoon by the way.

Just now, I have rang natwest twice to ask about express clearance of bankers drafts and they said that they dont offer the service anymore (and not for cheques either).... IS THIS TRUE!?!?!?! If so, is the seller lying??? or is the person in the branch confused or whats going on!? What if the draft is posted to an "express clearance centre" that no longer exists??

I am really confused now. If they do offer this service... anyone know roughly how long it takes???

please someone help me as to whether natwest DO OR DONT offer express clearance on cheques or bankers drafts!!

Mikeyorks

It's called 'special presentation' - not express clearance as there's nothing express about it. NatWest merely send the Draft by post to the Bank you had it drawn on ..... then they tell NatWest whether there are funds to meet it. Yes - it's a sevice NatWest offer.

As the Draft is drawn on Bank funds, not yours, then it's a particularly stupid thing to do as of course the Draft will be met. But - like a cheque - it still has to go through the normal Clearing system ..... so it will be at least 4 working days.

Best thing you can hope for is they release the car once they get the call saying the draft will be met? But if they're waiting for cleared funds into their account it will be 3 days from the date the Draft gets back to your Bank by post.

pjread

unless the bank the draft is drawn on goes under in the next 3 working days it'll be paid.

It seems absolutely ridiculous really - if they were going to do this, they might as well have taken a personal cheque as the only real benefit of a bankers draft is guaranteed funds.

opinions4u

pjread wrote: »

It seems absolutely ridiculous really - if they were going to do this, they might as well have taken a personal cheque as the only real benefit of a bankers draft is guaranteed funds.

A stolen / forged bankers draft is not guaranteed funds.

Therefore a bankers draft should never be assumed to be guaranteed.

pjread

true but if you're going to await cleared funds I don't understand why you'd ask for a draft rather than a personal cheque

richy_no1

So your saying the funds from the bankers draft will clear 3/4 working days after it has been "specially presented" or 3/4 working days after it's been banked (i.e. last thurs??)

Surely once this special presentation has been done on a draft, it cant bounce??... as the issuing bank has verified its authenticity (and theres no 'stop' on it) and that because its a draft it wont bounce because of lack of funds.

Mikeyorks

Post #2 covers it!

richy_no1

Ah ok... so the draft/cheque enters the clearing system when it arrives at the issuing bank's office for "special presentation"... or once its banked in branch like any other cheque?

Mikeyorks

It's the same thing. The Draft has been sent to the Branch that issued it (your Branch presumably?) .... they will put it into Clearing and target the payees account.