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Triad man sells his car, but the buyer's check bounced. How to protect yourself from a bad check.

The best rule of thumb isn't even a cashier's check, it's going to the bank with the buyer.

GREENSBORO, N.C. — A viewer emailed 2 Wants To Know:

I got scammed out of my car by a guy passing bad checks.

It happens. If someone wants to buy something from you and wants to use a check, you need to protect yourself. Because when the check is bad, it's on you, not the bank.

“Have that person get the cashier's check while they're at the financial institution, sign it over to you, then you turn around and cash it right there at that time that’s probably the best case scenario,” said Michelle Shanks of Summit Credit Union.

You may think going to the bank with the buyer is inconvenient, but if the bank issues you that cashier's check and you cash it right there, you know the money is good. 

When you take a personal check or even a cashier's check from someone, and you’re not at the bank, you have no protection. It could still be cashed and end up being bad.

When a bank cashes a check, it's different than when a bank clears a check. The financial institution must honor the transaction of accepting the check first, there is no checking of funds immediately. So, if you take the money out immediately, you do it at your own risk. 

It can take several days or a week for a check to clear. You need to ask your bank or credit union.

And here's a warning about fake checks, that look real.

Anytime you get a check in the mail, but it says you need to pay a fee or taxes or something to receive the prize you've won, it's a scam.

When you're asked to use some of the checks but then send money to a third party, it’s not real. 

If you're sent a check out of the blue and they want to hire you on the spot, it's all a scam.

The best rule is not to deposit unexpected checks and if you do,  you need to wait for the check to clear.

    

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