Citi changes check clearing methods to limit overdraft charges

Citi says it will refrain from gouging consumers excessively with overdraft fees when it starts clearing checks in reverse order. Financial reform rules allow consumers the choice of opting in or out of overdraft loan programs for debit cards, but the Dodd-Frank bill was written to exclude the same option for checking accounts. {On Monday Citi said it will stop the practice of milking overdraft charges 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 away from itself the chance to charge its customers 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. Source of article –

More money taken by banks

In 2009, banks penalized consumers with overdraft protection on debit cards to the tune of about $20 billion. Because of overdraft on checking accounts, another $12 billion was charged by banks. bank lobbyists managed to get voluntary overdraft loan programs for checking accounts exempted from financial reform, however the FDIC is considering an opt-in requirement at smaller state chartered banks for overdraft coverage on paper checks and electronic payments. Before checking account coverage, Consumers Union suggests the consumer's permission should be what banks get to the FDIC. Consumers Union is a Consumer States non-profit publisher. The FDIC making these changes might hurt customers. You can expect other fees to be added on to Citi and Bank of America banks. When regulators respond, banks will discover other ways to make money for nothing.

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