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Banking Practices

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F

fotfn

Guest
Interested to know - is there banking law which dictates how a bank must clear checks presented. Can they clear by check number, or dollar amount. I seem to remember there was a lawsuit against Wells Fargo Bank for clearing the largest checks first, creating an overdraft and causing NSF's on the smaller checks - thus generating more bank fees????
 


K

Kelly143

Guest
I worked in a bank for two years, and the common practice is to clear checks in the order in which they are presented, regardless of check number or amount. Common sense is not to write checks if you don't have the money in the account to cash them. It is not the bank's responsibility to check for amounts, nor do they care if you bounce a check and can't cover the nsf fees. If you write checks and don't have the money to cover them, it is nobody's fault but your own.

And no, I'm not saying that YOU bounced checks and are irresponsible, just giving a general answer.
 

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