Bankers Draft

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Thanks for replies, helping me put my mind at ease. The bank said they received the cheque Thursday so I feel very relieved

jonesMUFCforever

JuicyJesus wrote: »

Most likely not. Drafts are guaranteed payment and cannot be stopped, even if lost or stolen.

Completely wrong here.
As long as the bankers cheque or draft has not been presented for payment they can be stopped but only if they are lost or stolen.

JuicyJesus

jonesMUFCforever wrote: »

Completely wrong here.
As long as the bankers cheque or draft has not been presented for payment they can be stopped but only if they are lost or stolen.

Wrong. I remember you having this discussion with me before. You're still wrong.

A draft is guaranteed. It will be paid whether it's reported lost or not. You can, if the bank agrees, get a replacement draft if it is lost or stolen, but they will usually make you sign an indemnity saying you're liable for the full amount of both drafts if both of them are cashed. There is no way to actually stop it from being paid or to have the money returned to you, other than handing the draft back to the issuing bank.

If you could stop a banker's draft, the entire point of them - guaranteed payment - would be lost.

Building society cheques are different. They can be stopped, and are not guaranteed payment.

jonesMUFCforever

How can you pay a lost draft into your account?

So you get a draft from your bank to say take to your local solicitor for a deposit on a house and on the way you lose it - are you saying that you lose the money?

Of course not you are definitely wrong - if you don't believe me please ask at your bank what the process is to stop a bankers draft.

A bank draft is not ''guaranteed'' - it is merely drawn on the bank rather than the customers account. Have you not heard of people being scammed by fake bankers drafts??

Agricolae

A genuine banker's draft cannot be stopped. It is a different legal instrument to a cheque.

A "caution" can be placed on a lost or stolen draft (to trigger additional security checks) and you can even get the money back if you sign an indemnity. However, if someone who is reasonably believed to be the beneficiary pays the draft into their account then it will still be honoured, and if you've signed that indemnity then your bank will take the money back out of your account.

A draft can be cancelled. This is only possible if the draft is returned to the bank and destroyed by the bank.