STRATEGIC PARTNERS
March 5, 2002
OTTAWA Ontario Canada -- In its annual report, "The Cost of Banking," Canada's Office of Consumer Affairs said that while bank fees overall have fallen in the last two years as banks have moved to introduce basic, low-fee accounts, ATM fees are on the rise.
Service charges haven't changed during the last year for people who maintain a monthly balance of less than $1,000 and have actually fallen for those who keep a balance of more than $1,000 in their account, according to the report.
But the report warns consumers that ATM fees are rising. Some big banks have raised their fee for using another bank's machine to $1.50 from $1.25, according to the report. They are also introducing surcharges for non-customers who use ATMs that aren't located at a bank branch. Both CIBC and Royal Bank began collecting surcharges at off-site machines late last year.
White-label machines now make up a third of the 35,000 ATMs in the country. Thirty-five percent of Canadian consumers report using the machines.
"Free enterprise is fine, but when free enterprise becomes usurious, it goes beyond rhyme and reasons," said Jennifer Hillard, of the Consumers Association of Canada, which wants a cap on the fees.
