# Sterling bank draft issues



## gally74 (25 Aug 2007)

heelo folks,

looking for some help here, 

i went over to the uk a week ago to buy a vehicel but the guy wasnt happy waiting for a sterling draft to clear, Bank of scotland, HSBC said it could take up to 7 days to clear. anyway in the end i was happy, decided i didnt like the car anyway,

when i came home i went into ulster bank, but there saying that i could loose 400 - 500 euro to convert back, but i can change the draft to any name i want free of charge, i changed it to british car auctions as i plan on going there this week, but can any one figure out a way from this?


----------



## MugsGame (25 Aug 2007)

Presumably this is due to 1) forex commission in both direction 2) movements in the exchange rate since you purchased the draft. You could use the sterling draft to buy euro somewhere else, another bank or a forex specialist, hopefully at a better rate. 

But you'll still have lost on converting to sterling initially. Did UB advise you of this issue when you purchased the draft?


----------



## xt40 (25 Aug 2007)

if afraid you made a mistake in getting a draft . noone will want to take it, especially as its issued by a foreign bank. cash is the only method for buying cars , especially in the uk. save yourself a lot of hassle and  cash it for sterling yourself. get the biggest notes you can and wear  some combat trousers of similar with big zippy pockets when going over. bring the withdrawal slip from your bank in case you were stopped by customs. you dont want them thinking your on a drugs run.


----------



## gally74 (26 Aug 2007)

hello,

thanks for the reply, the rates havent really moved and even at 1% it would be 100-200,

how would i cash the draft myself, thats what i originally wnet for aswell, but the girl at the counter said i couldnt do that, would i have to cash it in the uk?


----------



## ang1170 (26 Aug 2007)

xt40 said:


> if afraid you made a mistake in getting a draft . noone will want to take it, especially as its issued by a foreign bank. cash is the only method for buying cars , especially in the uk.


 
That's just not true - I bought a car in the UK from a dealer last year with a sterling draft which I got from my bank (NIB) before I went. Didn't have the slightest problem with it. Got the car as soon as I handed it over (though I assume they checked by phone that it was genuine).


----------



## Brendan Burgess (27 Aug 2007)

Ask to see the manager of your bank who may have discretion to "cash" the draft for you at a reduced exchange rate. 

A friend of mine went into his bank with a £30,000 cheque made out to himself and asked to exchange it for a cheque made out to someone else, but he was charged the exchange rate both ways as they had to first lodge it to his account in € and then sell him the new draft. 

Brendan


----------



## Leo (27 Aug 2007)

xt40 said:


> cash is the only method for buying cars , especially in the uk. save yourself a lot of hassle and cash it for sterling yourself.


 
Surely you'd be a little safer using a laser or other debit card!!!


----------



## jimmyd (27 Aug 2007)

Alot of the car dealers in the uk wont take Cash now just your debit card.


----------



## gobig (27 Aug 2007)

what was the name of the garage out of interest?


----------



## ang1170 (27 Aug 2007)

jimmyd said:


> Alot of the car dealers in the uk wont take Cash now just your debit card.


 
That seems unlikely - they mightn't accept it on the premises, but I'd imagine they'd be only too delighted to drop you down to their local bank to lodge it. Of course, the way things are going it might be tricky to get a bank to accept cash in future.....


----------



## ClubMan (27 Aug 2007)

Could you change the draft to your name free of charge, open a GBP£ denominated account (if these are available to personal customers - I seem to recall _Anglo Irish_, for one, offering them), lodge the money and then get another GBP£ draft for the payee of your choice?


----------



## Sue Ellen (28 Aug 2007)

xt40 said:


> cash is the only method for buying cars , especially in the uk.


 
Not a good idea.  What about the guy who bought a car on ebay and was told to bring cash only.  He was duly met by armed guys who took his money and needless to say no car supplied!


----------



## Cameo (28 Aug 2007)

I bought a car privately in the UK - the seller was happy to accept bank draft once he lodged it before handing over car 

I would assume that if the draft was dodgey the bank would pick this up quite easily by looking at it?

Once the draft is drawn in the name of a recognised bank should be no problem?

Also, the main reason for the bank charging for cancelling draft is the large commission they charge for FX rather than currency movements.


----------



## Leo (28 Aug 2007)

Cameo said:


> I would assume that if the draft was dodgey the bank would pick this up quite easily by looking at it?


 
There's a 'feature' of UK banking code where if at a later stage there's a concern that the draft was fraudulantly obtained, the bank will withdraw the funds from the recipients account. A lot of people have been burned by this one.


----------

