News

Legislation pushes for more debit disclosure

June 30, 2002

NEW YORK -- According to a New York Daily News report, New York Democrat Sen. Chuck Schumer has proposed legislation that customers using debit cards to pay for purchases would have to be informed of any bank fees on the spot, much as ATM customers are notified of any surcharges at the time of the transaction.

Schumer, a member of the Senate Banking Committee, said that most banks disclose debit card fees only in the fine print of the cardholder agreement and do not differentiate between debit sale and ATM withdrawal fees in monthly statements.

Schumer's bill, which will be introduced in Congress in the next few weeks, would require that debit card users be told in advance of any extra charges. The legislation also would require that banks separate debit card fees and fees for ATM withdrawals in monthly statements.