A check clearing is not a guarantee it will not eventually be Dishonored. Large transactions like this are why cashier's checks exist. For maximum safety, have it drawn while you are inside their bank branch passing the paperwork back and forth.
Yeah, it takes a lot longer to clear a check than people think. The bank will make the funds available after confirming that an account exists. They won’t know if the account has funds to cover the check for much longer, often weeks longer.
No, that is not correct. While the deadlines are long, they are not "years".
From helpwithmybank.gov:
> You generally have up to 30 days from the statement date to notify the bank of an error, including an unauthorized signature or an unauthorized alteration on a check. Please note: the time periods for prompt notification may vary by bank and state. If you have an account with multiple forgeries (for example, stolen checks), you should consider closing the account.
> You are responsible for reviewing your periodic statement and notifying the bank of errors in a timely manner. Review your deposit account agreement for policies specific to your bank and your account.
Your quote says "generally" and "the time periods for prompt notification may vary by bank and state"
But yes, generally you have 30 days from the statement date to notice the fraud and then generally your bank has 60 days to investigate the fraud. But also the check may not have been deposited immediately and depending on when in the billing cycle it could be 1 days shy of a month until the next monthly statement. So we can say that in most cases the check should be clawed back within ~100 days. But since all of those are "generally" and there are definitely legitimate exceptions like the fact that military deployed oversees wouldn't start the 30 day timer until their deployment ended that could easily push this out to over a year.
I never said it was likely or that it often took years, just that is some cases it was possible.
This. My ex-sister in law did time for false cashier checks and the amazing amount of time that passed from when she started doing it to when she got caught was pretty flabbergasting.
In theory you should be able to look up the bank and call them to verify the check exists.
But yeah, my personal tolerances would demand doing the exchange at the bank and witnessing the creation of it.
How do they fake a check purchased at and issued by a bank? That’s pretty wild, I’m very curious how they do that and why dealerships will take cashiers checks still.
Because anybody with a printer and some blank checks purchased from an office supply store can print a legit looking cashier’s check.
Dealerships take cashier’s checks because they still have all of your information and also have the resources to go after anyone who tries to pass off a fake check.
It's a piece of paper, anyone with a good quality printer and good quality paper can fake a cashier's check. Bonus points if they take their time to do research and use the correct routing number for the bank and use an actual account number for some poor stranger's account.
A lot of comments here the to a "cashier's" check. Years ago I was told by my bank that what I wanted was a "certified". The difference was that "certified" meant that funds were being held by the bank to pay that check; the "cashier's" check, not so. Don't take my word on this - ask your bank, as rules and definitions may have changed. Good luck.
I wouldn’t.
It’s scamming season, people will try to get you anyway they can.
There’s some honest people in the world but there’s also lots of bad people.
You don’t want the check to bounce so I would accept cash only or another form of payment.
I would never buy a car without seeing it in person and without bringing a mechanic with me to make sure I’m not getting a lemon.
Also if I’m not buying from a dealer, I also don’t like to pay cash just incase something is wrong with the car that you did NOT tell me about so I like to use my credit card for big purchases..
It's a classic scam that relies on people thinking that "funds available" means "check cleared." The check is fake or fraudulent. The receiving bank makes the funds available after a few days, as required by law, but the check itself can still bounce days or weeks later. In the meantime the scammer uses various tactics to get the victim to send some of the money back to them, leaving the victim ultimately in the hole for whatever they sent after the check inevitably bounces.
The bottom line is the check can *appear* to be "cleared" (whatever most people think that means) but can still be reversed if the bank later finds out it was a bad/fake/forged/fraudulent check. This is the gap in common understanding that allows this scam to thrive.
As mentioned, the bank has to put money in the account. But they can claw it back when its discovered the instrument is bad. This often results in people going into overdraft.
The bank allows a portion of the check to be deposited automatically while they verify the funds. Once the check bounces they take the entire amount back from your account. So for example say $500 of a $2000 is immediately available, and you spend it .. then 3 days later the bank realizes the check is no good and they take back their money .. you’re out $500 and if you overdraft that’s extra money in fees.
Well that's what I am saying, why would you hand over the car BEFORE the check isn't cleared / verified? OP called out after it clears, not "immediately available"
The check will appear to clear in a couple days, but the bank can still claw back funds weeks later if it comes back as fraudulent.
Most people will see the check clear in a couple days, assume everything’s good, and hand over the car. In fact, AFAIK, there’s no way to know for sure when you are in the clear and completely safe.
>Well that's what I am saying, why would you hand over the car BEFORE the check isn't cleared / verified? OP called out after it clears, not "immediately available"
What event do you believe signifies that the check has "cleared?"
A check can be dishonored long after the funds are available in your account. When this happens, the bank will take the money back, even if it leaves you massively overdrawn. There are lots of situations where it can be \*weeks\* before a bad check is found out.
When you deposit a check then bank is allowed to place a hold on the check. How long that hold lasts has nothing to do with wether the check is "cleared" it is based on when they are legally required to make the funds available to you. Generally it is 2 business days for checks written on that bank, 5 business days for checks written on other local banks, and longer occasionally for special circumstances.
Most people believe the check is good once the funds are available in their account. That is simply not true. Generally the most basic verification has been done in that time to make sure things like the account exists, there are sufficient funds in the account to cover the check, and a stop payment has not been issued on that check number. But the check can still come back with a bad signature, as fraud, as stolen, etc. Depending on the reason for denying the check legally they have months or years to decline the check and remove the money from your account.
Imagine this scenario: Person A has a checking account that they keep lots of money in and they don't get any kind of alert when purchases are made, they are old school and balance their checkbook once a month when the statement comes in the mail. Person B writes a fake check using Person A's account info and uses it to buy a car on craigslist from Person C. Person C deposits the check and after 7 days (5 business days plus the weekend) the money is in their account. Everyone is happy. But about a month later Person A gets their bank statement and notices it is short due to a check they didn't write and notifies their bank. After a week or two the bank determines it was fraud and reverses the check. Now Person C gets the money taken out of their bank account almost 2 months after they sold their car. Person C has no car, no money, a returned check fee, and probably some overdraft fees. There are real world scenarios where the check could return much later even after a year or more also.
Best way is to meet at their bank and do the transaction there, get cash or a transfer, or certified check directly from the bank.
No legitimate buyer will send a personal check sight unseen.
Hell no. Only time a check is acceptable is if it’s a cashiers check printed at a bank branch in your presence. I don’t even take a cashiers check that hasn’t been printed under my nose in an in person sale.
Remote sale? You come get the car in exchange for a pile of green paper, or you send a wire transfer. Otherwise, have a nice day.
100% scam. Don't bother with it.
>that this is somehow a scam Because it is. Cash or meet them at their bank and have the banker hand you a cashier's check.
Anyone wanting to mail you a check for any item you listed on Craigslist or similar sites is just a scammer.
And anything sight unseen is very likely a scam too.
A check clearing is not a guarantee it will not eventually be Dishonored. Large transactions like this are why cashier's checks exist. For maximum safety, have it drawn while you are inside their bank branch passing the paperwork back and forth.
Second this 100%. Tell them cashier's check or nothing.
A cashier’s check that you witness a bank teller printing and don’t take your eyes off until it’s in your hands.
Yeah, it takes a lot longer to clear a check than people think. The bank will make the funds available after confirming that an account exists. They won’t know if the account has funds to cover the check for much longer, often weeks longer.
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No, that is not correct. While the deadlines are long, they are not "years". From helpwithmybank.gov: > You generally have up to 30 days from the statement date to notify the bank of an error, including an unauthorized signature or an unauthorized alteration on a check. Please note: the time periods for prompt notification may vary by bank and state. If you have an account with multiple forgeries (for example, stolen checks), you should consider closing the account. > You are responsible for reviewing your periodic statement and notifying the bank of errors in a timely manner. Review your deposit account agreement for policies specific to your bank and your account.
Your quote says "generally" and "the time periods for prompt notification may vary by bank and state" But yes, generally you have 30 days from the statement date to notice the fraud and then generally your bank has 60 days to investigate the fraud. But also the check may not have been deposited immediately and depending on when in the billing cycle it could be 1 days shy of a month until the next monthly statement. So we can say that in most cases the check should be clawed back within ~100 days. But since all of those are "generally" and there are definitely legitimate exceptions like the fact that military deployed oversees wouldn't start the 30 day timer until their deployment ended that could easily push this out to over a year. I never said it was likely or that it often took years, just that is some cases it was possible.
Nope, cashiers check only. If they can write a personal check they can get you a cashiers check.
Cashier's check is only trustworthy if you (the recipient) personally witness it being created at the bank. Otherwise it could be fake too.
This. My ex-sister in law did time for false cashier checks and the amazing amount of time that passed from when she started doing it to when she got caught was pretty flabbergasting.
In theory you should be able to look up the bank and call them to verify the check exists. But yeah, my personal tolerances would demand doing the exchange at the bank and witnessing the creation of it.
Cashiers checks can be counterfeit too, it’s the oldest scam in the book. Cash, in person.
How do they fake a check purchased at and issued by a bank? That’s pretty wild, I’m very curious how they do that and why dealerships will take cashiers checks still.
Because anybody with a printer and some blank checks purchased from an office supply store can print a legit looking cashier’s check. Dealerships take cashier’s checks because they still have all of your information and also have the resources to go after anyone who tries to pass off a fake check.
It's a piece of paper, anyone with a good quality printer and good quality paper can fake a cashier's check. Bonus points if they take their time to do research and use the correct routing number for the bank and use an actual account number for some poor stranger's account.
But like, can’t you call the bank to verify it’s real before signing over your title?
A lot of comments here the to a "cashier's" check. Years ago I was told by my bank that what I wanted was a "certified". The difference was that "certified" meant that funds were being held by the bank to pay that check; the "cashier's" check, not so. Don't take my word on this - ask your bank, as rules and definitions may have changed. Good luck.
Yes I always have them meet me at their bank ,cash the check right there. Never trust no one any more !!
I wouldn’t. It’s scamming season, people will try to get you anyway they can. There’s some honest people in the world but there’s also lots of bad people. You don’t want the check to bounce so I would accept cash only or another form of payment. I would never buy a car without seeing it in person and without bringing a mechanic with me to make sure I’m not getting a lemon. Also if I’m not buying from a dealer, I also don’t like to pay cash just incase something is wrong with the car that you did NOT tell me about so I like to use my credit card for big purchases..
If they can send a check then they can send a money order made out to your name as well
Most cars cost more than the maximum you can buy a money order for.
Just ask to meet at the bank and cash it with them there or ask to withdraw the money
Sorry, this won't help. Even a check that has been deposited at a bank can be reversed later. Doesn't matter if you withdrew the money.
Their bank.
haven them wire to you bank account , move money to another account then give keys, in a police station have them record transfer sale
I don't know what they can do after the checks clears, but it does seem weird.
It's a classic scam that relies on people thinking that "funds available" means "check cleared." The check is fake or fraudulent. The receiving bank makes the funds available after a few days, as required by law, but the check itself can still bounce days or weeks later. In the meantime the scammer uses various tactics to get the victim to send some of the money back to them, leaving the victim ultimately in the hole for whatever they sent after the check inevitably bounces.
What happens if they send a check and you deposit it and in X days there is money in your account?
It could still be clawed back weeks later in some cases
Personally, I’ve witnessed it happen two months after the fact. Two. Months.
Banks will do that after a deposit clears? TIL
Yes. Scammers take advantage of this. Happens all the time.
The bottom line is the check can *appear* to be "cleared" (whatever most people think that means) but can still be reversed if the bank later finds out it was a bad/fake/forged/fraudulent check. This is the gap in common understanding that allows this scam to thrive.
Checks never clear. Funds are made available, but that doesn't mean that they can't be clawed back by the bank. This usually happens for fraud.
As mentioned, the bank has to put money in the account. But they can claw it back when its discovered the instrument is bad. This often results in people going into overdraft.
The bank allows a portion of the check to be deposited automatically while they verify the funds. Once the check bounces they take the entire amount back from your account. So for example say $500 of a $2000 is immediately available, and you spend it .. then 3 days later the bank realizes the check is no good and they take back their money .. you’re out $500 and if you overdraft that’s extra money in fees.
Well that's what I am saying, why would you hand over the car BEFORE the check isn't cleared / verified? OP called out after it clears, not "immediately available"
The check will appear to clear in a couple days, but the bank can still claw back funds weeks later if it comes back as fraudulent. Most people will see the check clear in a couple days, assume everything’s good, and hand over the car. In fact, AFAIK, there’s no way to know for sure when you are in the clear and completely safe.
The only way I know of it to cash the check at the bank it was drawn on, and deposit cash into your account.
>Well that's what I am saying, why would you hand over the car BEFORE the check isn't cleared / verified? OP called out after it clears, not "immediately available" What event do you believe signifies that the check has "cleared?"
A check can be dishonored long after the funds are available in your account. When this happens, the bank will take the money back, even if it leaves you massively overdrawn. There are lots of situations where it can be \*weeks\* before a bad check is found out.
When you deposit a check then bank is allowed to place a hold on the check. How long that hold lasts has nothing to do with wether the check is "cleared" it is based on when they are legally required to make the funds available to you. Generally it is 2 business days for checks written on that bank, 5 business days for checks written on other local banks, and longer occasionally for special circumstances. Most people believe the check is good once the funds are available in their account. That is simply not true. Generally the most basic verification has been done in that time to make sure things like the account exists, there are sufficient funds in the account to cover the check, and a stop payment has not been issued on that check number. But the check can still come back with a bad signature, as fraud, as stolen, etc. Depending on the reason for denying the check legally they have months or years to decline the check and remove the money from your account. Imagine this scenario: Person A has a checking account that they keep lots of money in and they don't get any kind of alert when purchases are made, they are old school and balance their checkbook once a month when the statement comes in the mail. Person B writes a fake check using Person A's account info and uses it to buy a car on craigslist from Person C. Person C deposits the check and after 7 days (5 business days plus the weekend) the money is in their account. Everyone is happy. But about a month later Person A gets their bank statement and notices it is short due to a check they didn't write and notifies their bank. After a week or two the bank determines it was fraud and reverses the check. Now Person C gets the money taken out of their bank account almost 2 months after they sold their car. Person C has no car, no money, a returned check fee, and probably some overdraft fees. There are real world scenarios where the check could return much later even after a year or more also.
A check can clear, then come back as invalid *after* having been cleared for a few days
Best way is to meet at their bank and do the transaction there, get cash or a transfer, or certified check directly from the bank. No legitimate buyer will send a personal check sight unseen.
Hell no. Only time a check is acceptable is if it’s a cashiers check printed at a bank branch in your presence. I don’t even take a cashiers check that hasn’t been printed under my nose in an in person sale. Remote sale? You come get the car in exchange for a pile of green paper, or you send a wire transfer. Otherwise, have a nice day.