#Consumer Affairs
All Banking Institutions
United States of America

Every bank uses the system of "largest check cashed first" during any given posting period. If you have 100.00 in your checking account and write five checks, two for 30.00, two for 20.00, and one for 60.00 and they all come to the bank during the same posting period, they will ordinarily post the largest amounts first. Namely, the sixty dollar check and then the two thirty dollar checks.

This causes three checks to bounce. One of the 30.00 checks and the two 20.00 checks. So now you owe 80.00 in checks and another 99.00 in fees bringing your amount owed to 179.00. If they had cashed the ones they knew would clear, the two 30.00's and two 20.00's, you would only owe 93.00 dollars in fees. An 86.00 dollar difference!

This is technically legal, but certainly not ethical. It only allows the bank to charge more NSF fees and increase their profits.

We the undersigned call on ALL banking institutions to stop the practice of honoring "largest checks first".

A new system would recognize the number of checks able to be cashed first, THEN charge NSF fees for remaining items. This will decrease expenses for consumers and restore some faith in the American banking system.

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The Stop Unethical NSF Fee Charges petition to All Banking Institutions was written by William Fannin and is in the category Consumer Affairs at GoPetition.

Petition Tags

unethical banks NSF fees