Taking important steps to minimize overdraft charges.

Beginning July 25, 2011, Citibank will process Consumer customers' checks from low to high -- in order of the smallest dollar amount to the largest dollar amount -- nationally. We began notifying our customers of this change through statement mailings this week.

Along with most major banks, Citi has historically processed checks from high to low, to ensure that customers' largest payments were covered first, for example a mortgage payment. At the same time, we must continuously review our business practices, listen to what our customers are telling us, and listen to feedback from other important Citi stakeholders. In evaluating this policy we have done just that, and made a business decision to revise it.

As an example:

• Mr. Sanders has $100 in his account. He has written three checks in the amounts of $90, $25 and $35.
• Today, Citibank would pay the $90 check first, leaving a balance of $10. The two outstanding checks may overdraw Mr. Sanders's account and result in multiple overdrafts.
• Beginning July 25, 2011, Citibank will pay the $25 and $35 checks first, leaving a balance of $40. The outstanding $90 check could still overdraw Mr. Sanders's account and result in a fee, unless he makes a deposit or moves money from another account.

This seemingly simple change in terms lets us show our customers in a big way that we are listening. We think this is the right thing to do and we believe we are the first major bank to do it. This change also addresses feedback we've received from community groups, who are equally important stakeholders for Citi.

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