Citi changes check clearing procedures to limit overdraft fees

Citi announced that it will clear checks differently, a move that could reduce excessive overdraft charges. Banks were forced to offer consumers a choice with overdraft protection on debit cards with financial reform. However, banks were allowed a loophole with checking accounts. {On Monday Citi said it will curtail the practice of milking overdraft fees from checking accounts by processing smaller checks first|By clearing checks written for smaller amounts first, Citi is keeping itself from stealing as much money as it has in the past with bogus fees|The lying, thieving bankers at Citi have chosen to restrain themselves from repeatedly charging overdraft fees by clearing smaller checks first|By clearing smaller checks first, Citi is essential taking from itself the chance to charge its consumers over and over for bounced checks. Resource for this article – Citi to give customers a break by clearing smallest checks first by MoneyBlogNewz|Citi is checking itself from charging repeat overdraft charges simply by letting smaller checks clear before a larger one sends the account into negative territory. Article resource –

Make sure to watch out for new bank rules

Debit card overdraft protection cost customers lots of money in 2009. A total of $20 billion was charged. Banks collected another $12 billion from overdraft fees on checking accounts. The FDIC feels like an opt-in requirement for banks on overdraft coverage is necessary even though the voluntary overdraft loan program for checking accounts was taken out of the financial reform. Consumers Union, the non-profit publisher of Consumer Reports, is urging the FDIC to require all banks to get consent before charging consumers for checking account coverage. Other charges will more than likely be added to banks such as Citi and Bank of America if the FDIC does this. Banks want the money still. The regulation will never be able to stop that.

Citations

Associated Press

finance.yahoo.com/news/Citi-to-start-clearing-apf-1510892963.html?x=0&sec=topStories&pos=main&asset=&ccode=

Consumer Reports

pressroom.consumerreports.org/pressroom/2010/11/consumer-reports-poll-only-22-percent-of-bank-customers-have-opted-in-for-debit-card-overdraft-protection.html

New York Times

nytimes.com/2010/03/10/your-money/credit-and-debit-cards/10overdraft.html?_r=1