Do you disclose to your customers the order in which you pay checks? If so, do you utilize a separate informational piece or is it part of your initial disclosures at the time of account opening. We currently do not advise our customers of our procedure unless they ask us.

We never used to disclose the paying order. We recently changed the order... so at that time it was decided to add a blurb to our TIS disclosures.

We have it in our Deposit Agreement. While specifying the order isn't a regulatory requirement, it is often encouraged and may be helpful in the event of litigation.

Check with your state banking dept. It is required by New York. We have an opening account booklet (Bankers System Inc.) that contains all the required disclosures (that one included).

Good point on the state laws. I wasn't specific. Here is some Texas info. Again, I'd encourage it just to be clear with the customer. At least those who read this stuff.

I agree with Andy. I am with a large multi-state bank and we added this disclosure to our Deposit Account Contract 2 or 3 years ago based on legal encouragement. Consumer protection groups are interested in this information from banks. Here is what we state:

"In our sole discretion, we determine what order checks, transfers or other orders of withdrawal will be paid from the funds in your Account. Generally, we will pay in the following order: amounts due the Bank, certain electronic transactions, and then checks from highest to lowest dollar amount."

"Put a dab between your cheek and gum, then spit when you've had enough." (I don't claim to know anything about the aformentioned, and my company sure doesn't.)

I also think it's a good idea to have something in that area of the deposit account agreement that says something to the effect:

"You should ensure, before writing any check, that the balance of collected funds in your account will be sufficient to cover all your outstanding checks, debits, charges and fees."

In other words, if they are handling their account properly (keeping enough funds on deposit to cover their liabilities), the order in which checks are paid is not really important. In the event they don't keep enough, having this type of provision juxtaposed next to the statement of check paying order drives home the point that customer misconduct is at the root of the problem -- not the bank's paying order.

In reply to:

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"You should ensure, before writing any check, that the balance of collected funds in your account will be sufficient to cover all your outstanding checks, debits, charges and fees."

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But, wouldn't that defeat the Bounce Protection Programs everyone seems to be wanting to do!

(Sorry, I couldn't resist. Most of you know I'm an opponent of that program.)

We recently changed our debit posting order to: 1)on-us checks, 2)ACH/ATM debits, and 3)checks in check order number. We notified all customers via a statement message 30+ days prior to making the change.

See OCC Interpretive Letter #916. Footnote 5 says that while not required by Federal law, specific disclosure of the chosen order of check posting minimizes customer confusion and helps to address assertions that a bank has acted unfairly.

**WARNING - OFF TOPIC***
Zaibatsu - I love your picture! Do you also have one of Quisp?

Yes, but I chose Quake because he is more manly, like me lol.

uhhh... you know it was from the overuse of steroids ...right?

Frankly I always wanted to see a tag-team wrestling match featuring Quisp, Quake, Count Chocula and Booberry.

Oops! Early Frivolity!

Those muscles are from eating Quake cereal morning noon and night.

What about King Vitamin in the wrestling match? Hey, what other cereals have name sake cartoon characters? Capn Crunch of course.

Well, there's a somewhat possessive one with Lucky Charms as I think the leprachaun's name is Lucky.

Is the rabbit itself named Trix, or just The Rabbit?

King Vitamin must be Mid-West or East Coast cereal as I don't recall it.

I think his legal name is Silly Rabbit. And how about Sugar Bear!

I'm pretty sure the Cookie Crook stole the Cookie Crisp.

In reply to:

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And how about Sugar Bear!

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Yes - but his cereal is Super Sugar Crisps so it's not really named after him.

Gad - Super Sugar... talk about falling off the Zone Diet!

You know, I thought about whether or not that cereal was actually Sugar Bear cereal. I couldn't think of another name because that's what I've always called it!

By the way - my apologies to the Paying Order of Checks serious readers - this is a major frivilous departure!!