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Judge blocks ATM surcharge ban in Newark, N.J.

May 11, 2000

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NEWARK, N.J. -- The New Jersey Bankers Association has temporarily blocked a Newark ban on fees for non-customer use of ATMs, using the same arguments that derailed similar ordinances adopted by the New Jersey township of Woodbridge and the California cities of San Francisco and Santa Monica. The Bankers Association requested a permanent injunction, charging that Newark's ordinance is preempted by laws that leave regulation of banks to federal and state agencies. According to the Associated Press, U.S. District Judge Joseph A. Greenaway Jr. granted the group's request for a temporary restraining order. A date for a hearing on the injunction has not been scheduled. The Newark City Council voted 9-0 on May 10 to adopt the ordinance. If upheld, it would require the approval of Mayor Sharpe James, who reportedly supports the concerns of the bankers. Unlike the Woodbridge ban, Newark's includes independently owned ATMs, in addition to those operated by banks. The Woodbridge ban was temporarily restrained in February by Greenaway, who found the banks provided "overwhelming evidence" that the ordinance was pre-empted by federal and state banking laws. The judge may consolidate the two cases.