STRATEGIC PARTNERS
July 4, 2000
SAN FRANCISCO -- U.S. District Judge Vaughn Walker struck down the nation's first municipal ATM fee bans, those approved last fall by San Francisco voters and Santa Monica's City Council. According to the Associated Press, Vaughn sided with Wells Fargo and Bank of America, ruling that any local ordinances restricting ATM surcharges violate federal laws. San Francisco officials had argued that the Electronic Funds Transfer Act governing ATM use allowed the city to enact consumer protection measures, including the right to regulate fees. But Walker said that two federal laws -- the National Banking Act governing nationally chartered banks and the Home Owners Loan Act governing federal savings banks -- took precedence. The ordinances were challenged in San Francisco federal court by Wells Fargo and BofA, which control 86 percent of the ATMs in the two cities. Another bank, California Federal, also joined the suit. San Francisco City Attorney Louise Renne vowed to appeal the case.
