Selling items such as cars and other valuable articles on the internet has become very popular. Unfortunately, criminals have not remained far behind in exploiting naïve sellers.
An interesting case is discussed in the latest Short-term Ombud’s Briefcase.
Mr. R placed his vehicle for sale on a website. He was contacted by a potential buyer. They proceeded with the necessary paperwork in order to transfer ownership. When Mr. R received a bank automated SMS indicating that the agreed purchase price had been deposited into his account, he released the vehicle to the buyer. When the funds did not reflect in his account, Mr. R contacted his bank. The bank informed him that EFT transactions can take up to three days to clear and reflect in the bank account. The bank did no confirm that the funds were cleared before the vehicle was released. Needless to say the funds never appeared in Mr. R’s account.
Click here to read the whole story, including the insurer’s rationale for rejecting the claim.