While tripping merrily through the mail, Wes Leatherock was overheard
 WL> What state has such a law?  While generally I am in favor
 WL> of anything protecting the consumer, this makes such an onerous
 WL> demand on the creditor that it appears unreasonable.
It was the law here at least at one time.  I don't know if it's still
in effect or not.
 
 WL> It is my recollection--and that's from a long time ago;
 WL> I haven't checked into it recently--that the bank has a duty to
 WL> return the smallest number of checks, the basis for this having
 WL> nothing to do with the bank's fees but with the damage it does
 WL> to the credit and reputation of the depositor.
 WL> Each check bounced damages your reputation with some
 WL> creditor, and the theory was that the smallest number of checks
 WL> should be bounced because that would damage your reputation with
 WL> the smallest number of creditors.
Unfortunately, that's NOT the way they do it.  If you have for example
$200 in your account, and 1 check for $200 and three small checks of 
$10.00 each hit the bank that day, their official policy is to pay the
$200 one and bounce the three smaller ones.  Then, they deduct a $20.00
service charge for EACH of the three smaller checks, so now, not only
did THREE checks bounce, you're $60.00 overdrawn, which of course you
are not aware of for several days until you get a notice in the mail.
What they told me was that the customers preferred it because the 
larger checks were usually for "more important" payments, rent, mortgage
etc, while the smaller checks were "less important".  (Notwithstanding
the fact that the checks that were returned are now all prpbably 
subject to ADDITIONAL penalties at the stores where they were cashed.
Actually, in my case they did not actually bounce the checks, letting
the overdraft ride, since I was a regular enough customer they knew the 
money would be coming in (and in fact it actually WAS in the bank,
lying in the night depository which they only checked once every morning
before the bank opened.), but they DID charge me the $20.00 overdraft fee
on THREE checks instead of ONE.
Don
... I'm not lost, I'm "locationally challenged"
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