News

ATM fee disclosure added to legislation

February 26, 2002

The House Banking Committee approved a measure that would require disclosure of ATM surcharges at ATMs. Most ATM owners already voluntarily disclose such fees.

The disclosure measure was a compromise, coming after a proposal to ban surcharges, by independent Rep. Bernard Sanders of Vermont, was rejected.It was sponsored by committee chairman Rep. Jim Leach of Iowa (R) and senior Democrat Rep. John LaFalce of New York.

The vote was 48-1, with Republican Rep. Judy Biggert of Illinois voting against. Biggert said she believed banks could regulate themselves in operating ATMs.

The measure will be added to the Financial Services Modernization bill (HR 10), which would allow banks, securities firms and insurance companies to merge. In addition to disclosure of surcharges, the measure would require that consumers be given an opportunity to terminate transactions rather than pay the fees.