How did the Financial Modernization Act of 1999 affect banks handling of credits and debits?
Does anyone know how this act changed the way banks handled debits and credits. As I remember it prior to this act banks followed GAAP whereby they applied credits before debits. Some personal history – I had direct deposit before and after passage. Prior to this acts passage my bank would credit my paycheck’s direct deposit then process checks that came in that night. After this act my bank started to process the checks first so that I they could charge overdraft fees then process my direct deposit literally hours later – maximizing overdraft fees. Does anyone know specifcally what provision of this act ( aka the Gramm-Leach-Bliley Act ) that allowed this ?
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