STRATEGIC PARTNERS
February 26, 2002
SPRINGFIELD, Ill. -- For the fourth time in three years, Illinois Rep. John Fritchey, a Democrat from Chicago, has introduced a bill that would prohibit state-chartered banks from charging ATM fees to non-customers. It also would eliminate the ATM fees charged to welfare recipients using "LINK" cards or other devices to access benefits.
First introduced in 1999, previous anti-surcharge proposals have not fared well in Illinois. The bill was defeated at committee level in 1999 and 2000 but made it to the House floor in 2001, where it was defeated.
The latest bill needs to come up for a committee vote before the end of February to be considered by the full chamber.
"Growing public outrage over the level of these and other fees is causing legislators to sit up and take notice. But I also know that the closer we get to victory, the more heated the opposition will become," said Fritchey in a statement.
Winning the ATM surcharge battle in Illinois would be an important victory for the consumer rights groups which oppose such fees. The state of Illinois ranks second only to Texas in the number of FDIC-insured banks, with 520 of which are state-chartered.
Convenience and the cost of maintenance are the industry's chief arguments against anti-surcharge legislation. Terry Schaefer, president and chief executive of West Pointe Bank and Trust in Belleville and a member of the Illinois Bankers Association, said the bill is unfair on several levels.
"We were involved in defeating this last year because of the inequity of the entire proposal. First, it only affects state banks, not nationally chartered banks, nor credit unions that attempt to be banks. And, quite frankly, the whole premise of providing services for nothing just does not make sense," Schaeffer said.
