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Possible overpayment fraud involving a cheque drawn on a British bank: am I guaranteed value after 6 working days under new APACS guidelines...
I know about the overseas overpayment scam where you get a foreign cheque and then asked to send cash via Western Union, but this one is all in the UK. I am selling a car advertised for £3250. We agreed a price via email and got a cheque for £5000 from a UK bank issued by a well known chain store. If I bank this and it clears, after six days I am covered under the new APACS rules? I tried contacting the store's head office and accounts dept, but they didn't really want to know. They seemed more suspicious of me!
This has all the hallmarks of a classic overpayment scam and prior to 30th November 2007 I would probably have advised you to call the police.
The new APACS 2-4-6 regulations state that the bank irrevocably guarantee to give value on a cheque after 6 working days provided you are not complicit in a fraud.
I know that in this case you are not party to the possible fraud but there are good reasons to be suspicious about a cheque payable to you for more than the value of the vehicle you are selling, especially when the cheque is drawn on the account of a third party. There would appear to be a high likelihood that the cheque is forged or stolen. Although you may get (and keep) value after six working days. I think if you are not to get a lot of hassle thereafter proving you were not involved you need to take exceptional measures.
Firstly I think you need to ask the purchaser under what circumstances he obtained the cheque and see if he comes back with a remotely rational explanation.
Secondly I think you need to put your bank on notice in writing of the circumstances surrounding your receipt of the cheque and your suspicions about it. Demand that they speak to the issuing bank to clarify the cheque is genuine and properly signed and issued by a responsible person. Ask them for an irrevocable guarantee that they cheque has value before you release either the vehicle or any money. Request that the issuing bank speak to their customer before guaranteeing value.
Thirdly, if the cheque is found to be forged or stolen you need to inform and cooperate with the police.
I would be very interested to hear how this case progresses.
Law Answers has full details on the guidance from APACS.
http://www.lawanswers.co.uk/library/6-days-cheque-clearance
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