Personal Finance

Bank draft cashed in 2015. No issues at bank that cashed it. Now in 2018, originating bank says it wasn't cashed.

  • Last Updated:
  • Jan 14th, 2018 4:19 am
[OP]
Deal Guru
Mar 23, 2009
14779 posts
2613 upvotes
Toronto

Bank draft cashed in 2015. No issues at bank that cashed it. Now in 2018, originating bank says it wasn't cashed.

It's probably not as bad as it sounds... because the bank draft was only $1. It was for a purchase of something. However, it could end up being a headache if it means the purchase is not legally valid.

Basically what happened is I took out a bank draft for $1 at bank A and then it was deposited in bank B immediately. That $1 was applied to the account at bank B and the amount was never reversed. This was back in 2015. Now in 2018 I got a letter from bank A that states that they were never asked to cough up the $1. Hmmm...

Anyone ever encounter anything like this before? I'm just curious. I don't think I can get this sorted until next week since it's Friday night now.
7 replies
Member
Feb 17, 2017
437 posts
201 upvotes
Calgary
EugW wrote:
Jan 12th, 2018 7:24 pm
It's probably not as bad as it sounds... because the bank draft was only $1. It was for a purchase of something. However, it could end up being a headache if it means the purchase is not legally valid.

Basically what happened is I took out a bank draft for $1 at bank A and then it was deposited in bank B immediately. That $1 was applied to the account at bank B and the amount was never reversed. This was back in 2015. Now in 2018 I got a letter from bank A that states that they were never asked to cough up the $1. Hmmm...

Anyone ever encounter anything like this before? I'm just curious. I don't think I can get this sorted until next week since it's Friday night now.
I know when I was working for a bank in the UK, sometimes the bank wouldn't bother actually processing cheques that were for a very small value, they'd just credit you the amount. After all its probably cheaper than processing the draft/cheque through the system. I imagine the same has happened here.
Deal Expert
User avatar
Dec 11, 2005
18750 posts
1163 upvotes
Why would you need a bank draft for $1???
To be nobody but yourself - in a world which is doing its best, night and day, to make you everybody else - means to fight the hardest battle which any human being can fight; and never stop fighting. -- E. E. Cummings
Deal Addict
Jan 21, 2014
2596 posts
682 upvotes
wouldn't the draft normally cost $7.50? unless you have TD AI then it's free
[OP]
Deal Guru
Mar 23, 2009
14779 posts
2613 upvotes
Toronto
mkl38s wrote:
Jan 12th, 2018 11:23 pm
wouldn't the draft normally cost $7.50? unless you have TD AI then it's free
Free on TD All Inclusive
brunes wrote:
Jan 12th, 2018 9:41 pm
Why would you need a bank draft for $1???
Legal purchase of shares in a new company. Needed the paper trail... but it seems to have failed here.
CanadianSpruce wrote:
Jan 12th, 2018 9:09 pm
I know when I was working for a bank in the UK, sometimes the bank wouldn't bother actually processing cheques that were for a very small value, they'd just credit you the amount. After all its probably cheaper than processing the draft/cheque through the system. I imagine the same has happened here.
Hmmm... The whole point for my doing this was to have official documentation. Perhaps the receiving bank’s documentation is good enough. Hopefully.

The strange part is there were actually a bunch of them, but I got the letter for only one of them. I’ll have to remember to check on the others too when I call in next week.
Sr. Member
Nov 30, 2011
748 posts
189 upvotes
GTA
2 points.
The $1 draft is valid forever so some clerk has been showing it outstanding on their GL reconciliation every month for 5 years. They are reaching out to you for help to get the item cleared. This is more common for larger drafts.

The bank that took the draft for deposit likely lost the draft. It does happen and I can tell you, no one is going to spend anytime looking for a dollar. When I managed a front line our daily over/under limit was $100 (a main branch) and any difference up to that amount could be carried but was eventually just written off.
[OP]
Deal Guru
Mar 23, 2009
14779 posts
2613 upvotes
Toronto
westcoastyvr wrote:
Jan 13th, 2018 1:27 pm
2 points.
The $1 draft is valid forever so some clerk has been showing it outstanding on their GL reconciliation every month for 5 years. They are reaching out to you for help to get the item cleared. This is more common for larger drafts.
I got in touch with someone at the originating bank today. They have no clue about my questions. As. you suggested, all they care about is getting the thing cleared.

I wonder why they waited so long. The draft was from 2015, and it's 2018 now.
The bank that took the draft for deposit likely lost the draft. It does happen and I can tell you, no one is going to spend anytime looking for a dollar. When I managed a front line our daily over/under limit was $100 (a main branch) and any difference up to that amount could be carried but was eventually just written off.
No draft to lose. It was a mobile deposit. I actually still have the physical draft in my possession. I found it in my files last night (along with the other drafts I cashed at the same time, including other $1 drafts).

I'll go to the receiving bank and ask them what the next step is.
Deal Addict
Dec 7, 2011
1759 posts
331 upvotes
VIC
It'll be hard and expensive to get a paper trail for a 2015 transaction.

Either take the $1 back from Bank A, or tell them to keep it and use it to increase the dividends they pay to their shareholders. :-)

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