Anti-surcharge bill passes Connecticut House

HARTFORD, Conn. -- The Connecticut state House of Representatives has approved a bill that would prohibit banks from charging a convenience fee to non-customers who use their ATMs, according to the Associated Press.

A similar bill passed the House last year but died in the Senate. Observers expect the current proposal, which sailed through the House April 5 on a 128-19 vote, to meet a similar fate.

The state Supreme Court ruled in December that Connecticut's banking commissioner did not have the authority to ban the fees. Since then, two of the state's biggest financial institutions have begun surcharging non-customers at their ATMs.

Banking Commissioner John Burke has proposed a bill that would allow out-of-state financial institutions and independent deployers to establish machines in the state, something that is currently prohibited by state law. Burke's bill, which includes a $1.50 cap on any surcharges, has been referred to the state legislature's Joint Committee on Finance, Revenue and Banking.

Burke believes his bill would promote competition in the state, resulting in an increase in the number of ATMs and creating market pressure that would help keep surcharges from rising.