posible scam

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Originally Posted by GuyG

I was on the understanding that bank cheques also need time to clear - same as normal cheques, so only definite ways to be certain you have been paid is direct deposit or cash.

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No, this is not true. The money for a bank Cheque is drawn from the persons account before it is issued, so the money is gone from their bank account, and cannot be put back without the original bank cheque being taken back to the bank. Once you have it in your hand, it is as good as cash. If your bank withholds the funds waiting for 'clearance' then they are only doing so to make a few bucks off it themselves before they give it to you. Most banks will clear a bank cheque immediately, and if you have one that doesn't, I would find a new bank - they are using YOUR money for their own gain.

I know of a person who went to buy a car with a bank cheque, the sale fell through and he ripped the cheque up and threw it in the bin. He did his doe, as the bank would not refund the money - once it is in your hands, treat it like is the real thing...

Cheers - Gav

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Originally Posted by bacicat2000

find a new bank - they are using YOUR money for their own gain.

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G'day Gav,

That sounds like standard banking principles!

Or is that a new "possible scam" thread waiting to happen!?! :angel:

Dave

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Originally Posted by bacicat2000

I know of a person who went to buy a car with a bank cheque, the sale fell through and he ripped the cheque up and threw it in the bin. He did his doe, as the bank would not refund the money

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As all cheques become stale after a set period (6 months IIRC) he should have been able to get his money back after the time had elapsed and the cheque not presented.

Peter,
Insist on bank cheque or cash.
I even accept personal cheques but I insist the vehicle not be removed (or receopt issued) until funds have been cleared.

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Originally Posted by bacicat2000

If your bank withholds the funds waiting for 'clearance' then they are only doing so to make a few bucks off it themselves before they give it to you. Most banks will clear a bank cheque immediately, and if you have one that doesn't, I would find a new bank - they are using YOUR money for their own gain.

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I wrote a personal cheque and posted it. Realising I had insufficient funds in my account, I went into a branch of my bank and deposited cash into my account. After the transaction, I asked for an account balance. When I queried why the cash deposit did not appear, the teller told me cash takes three days to clear. That same teller also refused my request to speak to the manager. That bank (Which bank?) is now my former bank after a series of disagreements.
Gav, you're right about the bank cheques but people in the banking industry don't know this.

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Originally Posted by Graeme

As all cheques become stale after a set period (6 months IIRC) he should have been able to get his money back after the time had elapsed and the cheque not presented.

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Unfortunately it doesn't work like that. Bank cheques don't work anything like personal cheques. Banks being banks, they refuse all liability once they have cut the cheque - check out the terms and conditions on the bank cheque that you sign when they give it to you... The money on the cheque would sit in limbo for an amount of time before someone (the bank presumably) take the funds back - not really sure? In my mates case, it was $2000, so although a lot to loose, it wasn't like a $30 or $40K cheque to buy a new car, etc.

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Originally Posted by Mick_Marsh

When I queried why the cash deposit did not appear, the teller told me cash takes three days to clear. That same teller also refused my request to speak to the manager. That bank (Which bank?) is now my former bank after a series of disagreements.

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Yep, that bank are the biggest thieves when it comes to these sort of things. Imagine how much money they make using customers funds like this before finally getting around to putting it into your account...

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Originally Posted by bacicat2000

Unfortunately it doesn't work like that. Bank cheques don't work anything like personal cheques. Banks being banks, they refuse all liability once they have cut the cheque - check out the terms and conditions on the bank cheque that you sign when they give it to you... The money on the cheque would sit in limbo for an amount of time before someone (the bank presumably) take the funds back - not really sure? In my mates case, it was $2000, so although a lot to loose, it wasn't like a $30 or $40K cheque to buy a new car, etc.

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It wasn't always like that, not for all banks at least, as my son returned a bank cheque after almost 12 months of carrying it around and was told it would have been cancelled and returned to his a/c soon anyway, with 12 months almost elapsed.

OK, to clarify, AND I did work in the industry.

Bank Cheques do need to clear. They can be lost, and if so reported will be stopped and so can bounce. Also, the Bank will issue a bank cheque paid for by cheque which needs to clear. If that cheque bounces they will bounce the bank cheque.

Never count on Bank Cheques. Also anyone who says that cash needs to clear, ask for the money back. There's two ways they can put the money into the acct. Either they process it immediately into the account, the way they should. Otherwise they write down the cash value onto a slip that gets put into a tray with the deposit slip and sent to the overnight processing centre, where someone, usually female, asian or eastern european will key in the details of the deposit account and the value, the "cash" slip is used as a withdrawal from the branches cash account which is credited with the cash via a similar deposit slip filled out to match the withdrawal at the same time.

So instead of just keying it in on the computer, she's filled out 2 or three forms.