Class action suit charges FIs, ATM operators with collusion over fees

Class action suit charges FIs, ATM operators with collusion over fees
Tags: Regulatory Issues
August 18, 2004

New York Post: A new federal class action suit charges ATM operators and banks with colluding to gouge customers every time they used ATMs. The suit, filed in Manhattan federal court, complains that customers often pay twice for the same transaction - a "foreign" ATM fee to the bank and a surcharge to the ATM owner. The suit alleges banks collude with ATM operators to charge "unnecessary" and "fixed" interchange fee to justify "artificially inflated" customer fees. Among the defendants: Concord EFS, Bank of America, JP Morgan Chase, Citibank, Sun Trust Banks, Wachovia Corp., and Wells Fargo & Co.