Umpqua Bank has announced it will stop the controversial practice of reordering transactions from highest to lowest, beginning Oct. 16.
In a Sept. 16 letter to customers, Umpqua executive vice president for community banking Ric Carey said the bank will change the order it processes and posts debit transactions to checking accounts. Transactions made by check, debit, online, at ATMs and point-of-sale (stores) or by wire transfer will be ordered from lowest to highest. Previously the bank could reorder the transactions from highest to lowest if it so chose.
Consumer advocates contend such reordering is unfair and leads to higher overdraft charges. Big banks defended the practice, saying customers wanted their larger transactions processed first. Umpqua's letter says, "There is no policy that is favorable in every instance."
Read more at OregonLive.com.