STRATEGIC PARTNERS
December 20, 1999
The Connecticut Supreme Court issued a 5-2 decision overturning state Banking Commissioner John P. Burke's four-year ban on ATM surcharges, leaving Iowa as the only state where such a ban remains. FleetBoston and First Union had challenged the ban. Both banks planned to begin charging non-customers a $1 convenience fee to use their ATMs, First Union beginning on Dec. 21 and FleetBoston on Jan. 3. Because the case was decided by the state's highest court and does not raise a constitutional issue, there is no avenue for appeal. While Burke said he would abide by the decision, state Attorney General Richard Blumenthal said he would seek legislation that would explicitly outlaw the fees. Burke had contended that surcharging was not allowed under a 1975 state law that let banks charge each other for their respective customers' use of ATMs. But according to the court: "There is nothing in the statute's language, history, or background" to support Burke's view. The fight continues in California, where banks are appealing surcharge bans in San Francisco and Santa Monica. In Santa Monica, Bank of America and Wells Fargo have limited access to their machines to customers only.
