Guy buying my car paying by Draft

Brendan said:

That simply is not my understanding of it. You went into a bank with someone who owed you money. They defrauded the bank. If the bank had given him cash instead of a bank draft, then the bank would have no recourse to you.

Can we be clear about the result of the legal action. Were the bank forced to honour the draft?

If you were party to the fraud, I could see why the bank might try to dishonour the draft. But that does not seem to be the case here, although the bank may have suspected you.



Brendan

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Apparently, the modus operandi which we unwittingly fell victim to, was for the fraudsters to look for drafts as a means of settling urgent "business debts", drawing from apparently cleared funds. In this case we were deemed guilty by association until we were able to prove differently and eventually collect our money.

mathepac said:

Apparently, the modus operandi which we unwittingly fell victim to, was for the fraudsters to look for drafts as a means of settling urgent "business debts", drawing from apparently cleared funds. In this case we were deemed guilty by association until we were able to prove differently and eventually collect our money.

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As a former bank manager and developer of I think that I can answer this one. Brendan's approach is correct. A draft which is issued by a bank must be honoured by that bank, regardless of the type of funds used to purchase that draft. The only possible exception to this would arise if the payee of the draft was complicit in a fraud concerning that draft.

I am unclear about the legal action involved. Was it a criminal conviction for fraud or attempted fraud? Have you made any attempts to enforce payment of the draft by the bank?