I am trying to sell a car on the Internet.

A potential buyer wants to send me a cashier's check for more than the selling amount of the car. He wants me to Western Union him the difference (app. $6,000).

I am truly concerned the cashier's check may not be valid and I will be stuck. I do not know this person and I have read where so many people have gotten burnt with payments made by personal checks, cashier checks, travelers cheques, etc. being counterfeit.

What is the best way for me to receive payment on the sale of my car besides a wire transfer?

If he insists on sending payment by cashier's check, should I have it sent in for collection first? If so, how long should this take?

Am I correct in saying that the Regulation CC holds may not be sufficient time for the cashier's check to clear the other bank?

Please offer any advice. Thanks for your help.

I would carefully research this buyer, and determine why it is so critical that he send you more than the purchase price. We have seen multiple attempted scams at our bank, where the purchase document is a fake and the seller is left holding the bag - BEWARE, BEWARE!!!

This is my post above - sorry I was anon previously - to continue, I would definitely request a wire transfer from this purchaser. It shouldn't bother him/her, because if they truly have the collected funds for a cashier's check, they should have the funds for a wire transfer, but I would still be very, very, very, very leery. The time for a check to clear collection is indeterminate, and as you point out Reg CC may not help you.

This sounds exactly like all of the scams we bankers have been warning our customers about, especially since this person wants you to wire the overage to him Western Union. You asked what was the best way other than a wire transfer (which is the best way, by the way) and wondered about a cashier's check and reg cc holds. If you have a check sent for collection, it usually takes from 10 to 30 days to find out if the money is there. The bank will not release the funds to your bank on a fake cashier's check. There would be no hold on that money in your account because it wouldn't be credited to your account until the funds were sent from the paying bank (reg CC wouldn't apply), so I believe that sending the cashier's check for collection would be the second best way. If the check is fake, then you would know about it within a month or so, but of course, don't release the car until the funds have been collected. I also think that it wouldn't hurt for you to let your bank in on this, possibly talking to a supervisor and expressing your concerns over the collection of these funds. I wish you luck with this, and kudos for possibly catching a scammer without paying the ultimate price of losing both your money and your car!

First, tell the 'buyer' that has contacted you that you are aware of the scam- chances are he'll leave you alone. I know you want to sell your car, but I can guarantee you that you have not been contacted by a legitimate buyer.

Once a legitimate buyer does come along, the above suggestions are excellent. Wire transfer first, cashier's check (for the sale price only) as an alternate. And by all means, send the check for collection and wait until you have good funds from the paying bank before you ship your car. Your bank may charge a fee for handling the collection item, so it may be in your best interest to find out the cost ahead of time and factor that in to the sale price of your car.

This is a very common scam now. Do a Google search on the terms "Cashiers" "Check" and "Scam" and you'll find numerous links including some state attorney generals links with information about the scam and the course of action for victims.

Your scenario is classic textbook of how this scam works. The scammer has no interest in getting your car. He only wants to get his hands on the $6,000 that will be wired to him. You'll be left holding the bag for that $6g's when your bank notifies you that the check has been returned as a counterfeit. Do not, under any circumstances, send that money to him via Western Union or any other wire transfer until you are 100% certain the cashiers check has been PAID by the issuing bank (and the easiest way to do that is to have the item sent for collection - your bank can tell you how). But I'd start out by telling the buyer that you are not interested in a cashiers check for more than the purchase amount.

Also, talk to an officer at your bank and ask his opinion. The most secure form of payment is a wire transfer, however, I would not want to give a total stranger all that info. about my account. Therefore, you may be able to get the bank officer to allow this transaction to come to his attention and then he could deposit in your account. Do not ship the car until you have "good" funds.

This is in all probability, a scam. Good luck.

Since your "buyer" wants you to refund the extra money via Western Union - why don't you suggest that the "buyer" cut out the extra step and simply wire you the EXACT amount for the car via Western Union?

My guess is you'll get one of three respones:
1. An elaborate story as to why the "buyer is unable to do so. The story will probably contain some glaring grammatical errors.
2. A very indignant or threatening response accusing you of acting in bad faith.
3. No response.

I would avoid this like the plague. Check this OCC alert at http://www.occ.treas.gov/ftp/alert/2003-8.doc.

this is a scam

we have recently had a few custoemrs get taken with this becasue the original check was worthless

I would stay away from this deal

This happened at our bank about 2 weeks ago. The man was told the same thing and he had a cashiers check for over the amount. He brought the cashiers check in and my supervisor called the other bank and it turned out that it was counterfeit. Do not give the buyer any money or any merchandise until the check is cleared!

Thanks everyone for your responses. I was the anonymous, original poster with the question. It was a sincere question since it was a true situation for me. Sometimes I find even tho I am a banker, it is good for me to step back when I am a consumer, and gain other banker's perspectives.

I did take your advice and e-mailed the potential buyer that I would need to send the cashier check in for collection and it would take app. 10 - 30 days before I would release any funds or my car. Guess what. I never heard back from the individual.

Also, his excuse for wanting to send more funds then what the selling price of the car, was that the check was issued to him from his client to also cover the shipping costs, etc. So in all reality, I also would have been the "last" endorser on the check.

Thank you all for helping me "sort" it out. As bankers, we have "sound" judgement, as consumers, it is a scary world. I wish all consumers could read your responses. They were excellent "words of advice."

This also gave me an avenue to allow my husband to see other banker's advice, not just mine. He then understood where I was coming from.

Thank you!!