Is there some way to wire through a trusted proxy so the guy on the other end doesn't actually get my bank numbers? I suppose Moneygram or Western Union might be options. So localbitcoins automatically handles the escrow?
They do get your sort and account number but then these details are given out on every written cheque and every time you buy using a debit card this would be provided information. I wouldnt say its completely harmless but mostly its not a problem to disclose such information and banks do not simply allow people to sipher out cash purely by knowing an address. Its just a reference not permission, I think having credit card details is far worse and thats why they introduced the 3 number thing on the back as well.
Anyhow LBC does handle the escrow part and the best part is to exchange with long term members who do regular business. Its in their interests not to be causing trouble because you are already paying some % for their benefit and most of these guys just want to do as many trades as possible.