OADA was recently notified by a Cincinnati-area dealership that they had a cash buyer present a fraudulent cashier's check as payment on a vehicle. The consumer used the name "Dennis Louis Haywood". The check (pictured below) looks like a legitimate cashier's check. However, Citizens Bank confirmed that this is not a real cashier's check.

Citizens Bank will only verify checks at a branch. The dealer suspects that they were targeted because there is no branch nearby. Ultimately, funds could not be verified, and the customer is not responding to their inquiries. Fortunately, the dealership's policy is to refrain from delivering vehicles until a check clears.

This should serve as a reminder for dealers to refrain from delivering a vehicle until good funds can be verified. In the case of a cashier's check, dealers should contact the bank directly to ensure the check is not fraudulent. As a best practice, do not call a bank using a phone number listed on the cashier's check. If the check is fraudulent, the phone number will likely be answered by someone involved in perpetrating the fraud. Dealers should establish consistent policies and procedures for accepting cash deals in the sales department, including payment via personal or cashier's checks.

Please contact the OADA legal department with any additional questions.