Citibank Policy Change = Victory for Consumers

John Longo Lawyer

Thank You Citibank

One of the most outrageous ways banks fleece their customers is by deliberately processing checks in the order that will generate the most overdraft fees for the bank. (I wrote about the practice here.)  In a small victory for consumers, Citibank is adopting a better policy for handling checks. As CNNMoney is reporting:

“As standard practice, banks process checks from largest to smallest, which means that if a large check overdraws an account, then each smaller check will too — resulting in multiple overdraft charges, at nearly $30 a pop.

But on Monday, Citibank said it will start clearing smaller consumer checks first, giving a reprieve for those struggling to get by.”

Thanks Citibank.

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