Building Society Cheques

[woofas]

I am about to sell my car & I have asked for a Building Society Cheque or Banker's Draft payable to me. I understood that this method was a guarantee of payment clearance but now am not so sure?

[kjn2]

Like any other cheques Building Society cheques/Bankers Drafts are not 100 per cent safe from fraud. Safer than a personal cheque, but still open to fraud.

[hc4361]

BSC and drafts can be forged or stolen. Make sure the sale completes during banking hours and call the named bank to make sure it has been legitimately issued.
Look at photo id of the seller - his driving licence or passport. Get proof of his address.

The last time I sold a car the buyer was very understanding and happy to come with me to my bank where the cash was handed over and deposited in my account. I wasn't going to risk forged bank notes.

You are right to be cautious.

[Peter Pedant]

If a building soc cheque turns out to have been stolen
then it wont be honoured

big stink about this - erm around 50y ago.

[hc4361]

I have no reason to doubt this story:
http://www.telegraph.co.uk/motoring/2738907/A-cautionary-tale.html

And this is sound advice:
Be aware that a banker’s draft or building society cheque is not necessarily safe from fraud. They can be stolen or altered like any other cheque, and if altered, stolen or counterfeit they will not be honoured. If you receive a banker’s draft in payment for goods, you should wait until the end of the 6th working day after you've paid the draft in to your account before releasing the goods.

http://www.financialfraudaction.org.uk/Consumer-fraud-prevention-advice-cheques.asp

[Peter Pedant]

eek- only ten years ago
the one I was thinking of was when they rang up a different office of the Building Society who said O there is no problem
[ but there was ]

and ended with the question "well is a Building Society cheque any better than a personal one ? " and clearly the answer was no

If they dont pay for fraud then there is no difference
[ but ya can't really blame them - who wants to pay the ante for fraud ? ]