Is this a safe way to take payment...

I've just sold my car, and the buyer wants to pay by Building society cheque. He'll go into my local branch, and get them to make the payment out in front of me. Is this a safe way to accept payment, or can he later stop the cheque, after he's driven away in the car?

If he is going in, why cant he get cash out? 

I guess he maybe could, it would be a matter of ordering it first. It's a very small town where I live and it's only a small branch of the society and the car is £14k.
He's not local, but I guess he could maybe ring the branch before he came.... I'll put the idea forward

Or you could wait for the cheque to clear before giving him the car. Ex FFRR 4.2 Supercharged

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Ludzy wrote:

Or you could wait for the cheque to clear before giving him the car.

It's safe mate. I'm pretty sure (double check with the bank) that the cheque can only be stopped if it's reported stolen, not because he's changed his mind.

The only thing with drafts and building society cheques is checking they aren't stolen in the first place, if youre seeing it issued then you should be pretty good.

Direct bank transfer CAN be reversed before close of business that day.

If he's having it issued in the bank in front of you then it's gonna be kosher...... My Previous RR's!
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Surely it can't be that far to a town with a propper bank? Personally for 14K the only thing I would accept is cash.

If you look online, cheques can be reversed for a month or so, even after they've cleared - for varying reasons. 

If you are with him when the Cashier produces the draft then you can verify that it is genuine, which is the biggest issue with Bank or BS Drafts.

As said before, once drawn then it is irreversable unless he gives it back to the Bank or BS to cancel.

James

Also if you take CASH sums of more than £10k into a Bank/BS you have to be reported to the police by them incase you could be money laundering 2018 Mini Countryman Cooper S E All4 PHEV in Melting Silver - it’s whisper quiet in EV and polluter modes

Tim in Scotland wrote:

Also if you take CASH sums of more than £10k into a Bank/BS you have to be reported to the police by them incase you could be money laundering

Really? Do they tell you when they do that? I've never had that issue in the past. 

New one on me also , never had any issue's with large cash amounts , You must be a shady character Tim ......

Only way he would get the car from me is to wait till the cheque clears and that you are able to withdraw from the funds deposited.

Putting a cheque into the bank and having it verified by the cashier does not prove that it will be honoured , short drive away in the car and all it would take is a phone call to stop it .

Then if that happens you have the inconvenience of finding the guy , breaking his legs and severing his two thumbs from his hands with a pair of pliers .......  ====================================

"Open Mike Night " sounded like a lot of fun until i found out i was going to an Autopsy

bank drafts and building society cheques are 100% safe (unless they are forged - and you can phone the bank/bldg society to check without visiting the branch)

they cannot be cancelled unless the circumstances are exceptional and can only be cancelled by the bank/bldg society - they cannot bounce as they are only issued against funds held and immediately taken from said account as the cheque/draft is issued

the £10K rule is correct afaik - part of the new money laundering regs

The £10k cash rule has been in effect for quite a long time now............... and it isn't just the UK that has the rule, most countries I visit have a $10,000 limit to the amount of cash you can import. In many 3rd world countries the limit isn't for money laundering, it's often an anti corruption measure to prevent lots of foreign currency being paid into private bank accounts. It can be a problem for the ship where often I can have considerably more than $10k in the cash box just to buy the food stores and pay the crew and have to declare it to the authorities. In Europe Germany is the only country where I have to declare all the currencies in excess of €10000 value onboard 2018 Mini Countryman Cooper S E All4 PHEV in Melting Silver - it’s whisper quiet in EV and polluter modes

Guess it depends on how bank clerks / managers enforce the £10k rule tho, ====================================

"Open Mike Night " sounded like a lot of fun until i found out i was going to an Autopsy

15,000 euro's is when the transaction needs to be reported to the Serious Organised Crime Agency. Not sure if this relates to just commercial opperations.

In essence we cannot refuse any cash sum, however we do have to notify SOCA. They then decide if they need to investigate.

The same applies to customers walking in to a High Street bank and depositing cash directly into our account.

James

PS - I wondered what was in that case yesterday Tim!!