Cheque Clearing Times

debtfreehopeful99

I'm selling a car and have an old fella wanting to pay by cheque. He does appear genuine but I obviously want to protect myself.

Some cursory searching tells me that the newer system means you're safe by 5pm the next day. 

However, I asked the same question over on a car forum and heard a few horror stories about people having the money taken back up to 14 days after paying in. I do suspect these were people who'd had their fingers burnt quite a while back.

I phoned my own bank and they said it would be safe by 5pm the next working day but I wasn't exactly filled with confidence by the representative's overall demeanour. 

I'd be very grateful if someone from the banking industry could clarify. TIA

Daliah

Cheque clearing times: https://www.money.co.uk/current-accounts/how-does-cheque-clearing-work

Taking payment for a used car: https://www.autotrader.co.uk/content/advice/how-should-you-take-payment-for-your-car

NB. I am not from the banking industry. I just used Google.

Speedbird676

The way I understand it, if both banks are using the image clearing system, the funds would be safe by 2359 the working day after the cheque is deposited. So, if you banked the cheque prior to your bank's cut off on Monday that would be by 2359 on Tuesday, so you could hand over the car on Wednesday. The key thing is both banks need to be participants of the image clearing system.

That's purely my interpretation from here:
https://www.wearepay.uk/participants-list/ 

I'm sure somebody much more knowledgable will be along shortly 

Daliah

Note that mobile cheque deposits are for rather low limit cheques. https://forums.moneysavingexpert.com/discussion/6221458/list-of-bank-building-society-app-cheque-deposit-limits/p1

Bigwheels1111

I would go to his bank with him and transfer the fund that way.
I thought cheques has gone the way of 🦕 

born_again

Even after it has cleared to your account. If it is a fraud cheque it can still be claimed back.
So do make checks that it is their account that the cheque comes from.

Then do not release the car till it has cleared.