Once the bank draft has been deposited by that individual or entity, their financial institution may still put a hold on the funds until the bank draft clears the payments system. Cheque fraud — How it works and how to recognize it. TD Explains: What is a mortgage broker? TD Explains: How to help protect yourself from phone scams. Main Menu Search ottawacitizen.
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Email Address There was an error, please provide a valid email address. Thanks for signing up! Harry and Meghan say they were unsupported by Royal 'institution' but evidence shows otherwise. Ottawa-born photographer wins COP26 contest with stunning animal shots. Kerr: Give up on lawn work, Ottawa — and on lawns. As a result, the couple was unaware that any risk would fall to them if the bank posted the draft by Swiftpost.
The bank put a stop on the draft, but it is still possible for someone other than the couple's solicitors to cash it, for example if someone fraudulently set up an account in the name of the solicitors' firm. The bank has internal controls to prevent this happening, but insisted that the couple sign an indemnity for the value of the draft before they re-issued a duplicate. If they themselves cash the draft, despite the fact it has been cancelled, we are held liable and will have to pay back twice the value of the mortgage.
The property the couple purchased is being used as their pension investment. The rental income from the property will then be used to provide a pension. However, if the draft is cashed, the couple will owe Ulster Bank twice the value of the mortgage and will have to pass ownership of the property to the bank, leaving them without their pension.
A statement from Ulster Bank indicated it could not discuss individual cases, as it regards all dealings with clients as strictly confidential. However, we will transfer the money for clients in any format they require including registered post," it continued. In this case, Mr Power had been the sender of the bank draft, posting the proceeds from the sale of a Dublin house from Ipswich to their solicitor in Dublin in order for the solicitor to lodge it to his Irish account.
Although TD Canada Trust eventually refunded Camacho's money, the issue demonstrates how poorly bank customers understand bank drafts. While bank drafts are sold by banks as a secure means of payment , if they're lost or stolen or altered or damaged, it's often not the bank that's on the hook to replace the money. It's the person who bought the draft. And since bank drafts are often used for large sums of money, people who lose them can be out a lot.
It's also not just the case in Canada. The financial ombudsman of the U. So if a bank draft is essentially a cheque, shouldn't you be able to cancel it like a personal cheque or even a certified cheque? As customers of the bank, why can't they cancel?
There may be something in the contractual relationship between the banks that makes those transactions different, but that I can't tell you. It just doesn't seem plausible. But perhaps an even better question is: Why are we still using any paper instrument that has to be transported physically, sometimes by a third party, to the payee? Trillions of dollars are moved around the world with the touch of a button every day.
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