News

Alabama measure to limit ATM fees will likely fail, says state rep

January 15, 2002

MONTGOMERY, Ala. -- State Rep. William Parker, a Democrat from Birmingham, said that lobbyists for Alabama banks have persuaded his colleagues to oppose his bill that would limit fees on any ATM transaction to no more than $1, according to an Associated Press report.

Parker said he sponsored the bill, which would cap fees at 50 cents each for both the surcharge and the interchange fee, because he has received numerous complaints from constituents about ATM fees.

The House Banking and Insurance Committee weeks ago held a public hearing on Parker's legislation but never voted on the measure. With just six meeting days remaining in the Legislature's regular session, Parker has little hope that his ATM bill will receive final approval.

Committee chairman Rep. Lesley Vance said he disagrees with the bill. "It's just something we don't need to get involved in," he said. "To me, I think the banks are doing a good service by having those things in the community."

The House Rules Committee has refused to approve Parker's resolution, directing the State Banking Department to "ensure that the amount and method of applying such fees are necessary and equitable."

According to the AP, Parker said he is considering another resolution that would create a House Interim Automated Teller Machine Transactions Fees Study Committee, which would cost taxpayers $5,000.