For those of you who thought bankers drafts were as good as cash, think again. It takes up to 5 days for a BD to clear and if it is stolen or a forgery your car can be long gone before the bank or you realise leaving you with no car and no money.
In that case what is the point of a bankers draft over a cheque? You might just as well wait until a cheque clears as a bankers draft and apart from the fact that a bankers draft proves that the funds are in “someone’s” account there are not really any other benefits that I can see.
During times of economic uncertainty criminals in any field become more sophisticated and are therefore more likely to help part you from your money, your car or both. If you are selling a car and someone pays by bankers draft the very least you should do is call the issuing branch and verify that the draft has been drawn there to verify that it is genuine. It would be best to ask someone to transfer the funds into your account on the day of collection and only release the car once that verification has happened, and if people do not want to play by your rules then don’t sell them the car.
Remember a bit of inconvenience is better than a lost car and no money and many insurance companies will use the small print not to pay out if you end up becoming the victim of fraud.
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