[Z06] "Houston we have a problem"
Thread Starter
Intermediate
Joined: Oct 2004
Posts: 44
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"Houston we have a problem"
I've decided to buy a corvette from an individual. My credit union has sent me a bank draft good for up to xxxxx amount of dollars payable to anyone except myself. The owner of the car called his bank and they told him that it would take 7 to 10 days for the credit union draft to clear and that he would not release the car to me until then. I can see his point on this. I called my credit union and explained this to them. The credit union person told me that this is the way its done and for me to reassure the seller that the draft is good, that the credit union has been in business for 75 years and that there would be no problem. I ask them if they could do a wire transfer to his bank account the answer was no. I then ask if they would let me write the draft to myself in this case, the answer was no.
So I have a catch 22, either he trusts my credit union or I trust him and write the draft to him and wait for a call from him saying the draft has cleared which I don't feel good about. How have others handled this problem?
All comments welcome
Thanks, Lucky
So I have a catch 22, either he trusts my credit union or I trust him and write the draft to him and wait for a call from him saying the draft has cleared which I don't feel good about. How have others handled this problem?
All comments welcome
Thanks, Lucky
Last edited by luckyflyer; Oct 29, 2004 at 06:30 PM.
Burning Brakes
Joined: Jul 2003
Posts: 1,171
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From: So Cal
I can see his point. Even if the draft is good, he wants access to the money right now, not 7-10 days from now. But there may be an easy solution to this for both of you. All you have to do is drive him to your credit union office and have him cash the draft right there. I would call the credit union a day or two in advance and tell them that you want to do this so they can make sure they have enough cash on hand. He can then drive to his bank and deposit the finds right into his account. It's a bit hassle, but it just might work. Another option would be to have the credit union wire the money right into his account. There is a small fee for that, but it would probably be worth it. Good luck.
Pro
Joined: Jul 2003
Posts: 645
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From: Hillsdale NJ
[QUOTE=mikeo]I can see his point. Even if the draft is good, he wants access to the money right now, not 7-10 days from now. But there may be an easy solution to this for both of you. All you have to do is drive him to your credit union office and have him cash the draft right there. I would call the credit union a day or two in advance and tell them that you want to do this so they can make sure they have enough cash on hand. He can then drive to his bank and deposit the finds right into his account. It's a bit hassle, but it just might work.
I wouldn't care who guarantees the check until the check is deposited, funds collected, and funds available in my account. Obviously a wire transfer makes it easier since the funds are available immediately. Much like a cashier's check.
I wouldn't care who guarantees the check until the check is deposited, funds collected, and funds available in my account. Obviously a wire transfer makes it easier since the funds are available immediately. Much like a cashier's check.
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The other guy's bank is not correct. Checks clear very quickly these days....and if it is a large amount, they get advance notice from the Federal Reserve if they are getting one back NSF. Is the check that you have one that you handwrite the amount in, or is it one that the credit union issues? I can understand their concern if it is a handwritten check. Why doesn't your credit union give you a check payable to the seller? Are you actually using the corvette as collateral for the loan at the credit union? If so, I would think they would want the information about the corvette you are buying....vin #, copy of title, payoff on owner's loan (if applicable).
I think there may be more to this than you think. I would be concerned with an answer such as "that's just the way it's done". I am the vice president of a credit union, and we would never blow off a member's concern like that.
I think there may be more to this than you think. I would be concerned with an answer such as "that's just the way it's done". I am the vice president of a credit union, and we would never blow off a member's concern like that.
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Originally Posted by Blue88Vert
The other guy's bank is not correct. Checks clear very quickly these days....and if it is a large amount, they get advance notice from the Federal Reserve if they are getting one back NSF. Is the check that you have one that you handwrite the amount in, or is it one that the credit union issues? I can understand their concern if it is a handwritten check. Why doesn't your credit union give you a check payable to the seller? Are you actually using the corvette as collateral for the loan at the credit union? If so, I would think they would want the information about the corvette you are buying....vin #, copy of title, payoff on owner's loan (if applicable).
I think there may be more to this than you think. I would be concerned with an answer such as "that's just the way it's done". I am the vice president of a credit union, and we would never blow off a member's concern like that.
I think there may be more to this than you think. I would be concerned with an answer such as "that's just the way it's done". I am the vice president of a credit union, and we would never blow off a member's concern like that.
I called the C.R. and ask if they have a branch close by, the closest one is about 250 miles away. We could both go there as Mikeo suggested and wrap the deal up. This whole thing is very frustrating. The c.s.r. at the c.u. was very nice but wasn't able to offer me any real solution to the problem. What about using an escrow service or a title company? It seems that there should be some way to make this work. Any help is appreciated.
Lucky
Last edited by luckyflyer; Oct 29, 2004 at 09:48 PM.
Pro
Joined: Jul 2003
Posts: 645
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From: Hillsdale NJ
Just to clarify for those that are not aware a bank draft is not a check. A company issues a bank draft and the payee then takes it to their bank to start the redemption process. There is no money in the account to cover the draft. Thus the issuing company can run a $ 0 balance in their checking account.
After the payee's bank initiates the process the draft is sent back to the issuing bank. Once received the company who's name appears on the draft has between 24 - 36 hours to redeem / pay for the draft.
Then the issuing bank sends the money back through the Federal Reserve System to the payee's bank. 7 - 10 days for a draft, remember its a draft not a check, is about right.
Hopes this clarifies.
After the payee's bank initiates the process the draft is sent back to the issuing bank. Once received the company who's name appears on the draft has between 24 - 36 hours to redeem / pay for the draft.
Then the issuing bank sends the money back through the Federal Reserve System to the payee's bank. 7 - 10 days for a draft, remember its a draft not a check, is about right.
Hopes this clarifies.
Drifting
Joined: Apr 2000
Posts: 1,390
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From: INDIANA
What most people do is to let you have the car on a certified check (Credit union or such), then withhold the title until check clears, which protects the seller, as the buyer cannot do anything, (plate or resell), with the car until he has the title. (as the seller, I never cancell insurance untill the money is good in my account though) Thats also the way it works with dealers.
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Team Owner
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Originally Posted by luckyflyer
My credit union has sent me a bank draft good for up to xxxxx amount of dollars payable to anyone except myself..... I ask them if they could do a wire transfer to his bank account the answer was no.
Burning Brakes
Joined: Dec 2001
Posts: 901
Likes: 15
From: Punta Gorda, FL
Originally Posted by LT1GMC
What most people do is to let you have the car on a certified check (Credit union or such), then withhold the title until check clears, which protects the seller, as the buyer cannot do anything, (plate or resell), with the car until he has the title. (as the seller, I never cancell insurance untill the money is good in my account though) Thats also the way it works with dealers.
Pro
Joined: Jul 2003
Posts: 645
Likes: 1
From: Hillsdale NJ
That's the way this credit union does business. Its their perogative to do it the way they desire no matter what we think or what we have done in the past. They are not going to change. He will wait the 7 - 10 days and in a year from now will look back at this as a minor hiccup.
Intermediate
Joined: Sep 2004
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From: Rochester NY
7-10 Days
Well, something sounds fishy. Also, didnt you read the part about 7 to 10 business days to clear. It sounds like it will take that amount of time no matter what. But to be honest, it doesnt make sense. The bank should have zero problems with the wire transfer.