Deposit slips: Don't be taken in by tricksters

6 October 2004 - Motoring

Beware of bogus bank deposits if you're selling your vehicle privately - and make sure the money is in your bank account before handing over then keys.

The banking services ombudsman has reported complaints from people who sold cars then found the supposed deposit slip had been made out with a stolen cheque.

OBS investigator John Simpson said: "We hear horrific stories of people who have been conned and have suffered huge losses."

Simply getting a faxed deposit slip is no guarantee that the money is in your account - that only happens when the cheque has been cleared and that could take several days, by which time your car is long gone.

Even if the faxed slip indicates a cash deposit, do not be so naïve as to believe it - deposit slips can be altered.

The ombudsman's advice:

• Never accept a deposit slip as proof of payment and always obtain written verification from your bank before handing over any goods.
• Make sure deposited cheques are legitimate and even request special clearance; the cheque is sent to the drawer's bank for verification before it is paid.
• A cheque can be returned even after the funds have been released to the payee under certain circumstances. Be wary of people offering to pay the purchase without seeing the car or who send a driver to collect it.