In an effort to placate customers who have complained about check-clearing policies at banks, including Citi (NYSE:C), the giant bank will start to clear the smaller checks it receives first in an effort cut back on overdraft charges.
Starting on July 25, according to an internal memo at the company, processing of checks will begin with the smaller amounts and graduate higher. That should protect customers from being charges with mulitiple overdrafts, or at least minimize the probability.
The standard practice in the industry of processing larger checks first typically can result in multiple overdraft fees being issued on checking accounts.
Citi doesn't offer overdraft protection on its ATM or debit card transactions and withdrawals.
Banks must now get permission from customers to offer overdraft protection before it can be implemented.
Citigroup was trading at $4.41, down $0.04, or 1.01 percent, as of 12:19 PM EDT.
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