STRATEGIC PARTNERS
February 27, 2002
NEWARK, N.J. -- The Office of the Comptroller of the Currency filed a brief in support of the banking industry in its challenge of Woodbridge, N.J.'s ATM surcharge ban, which was adopted in January, according to the Associated Press.
A federal judge in Newark delayed enforcement of the ban until April 10, when he will consider additional arguments. The OCC said the authority for ATM surcharges comes from the National Bank Act of 1864, which preempts all state and local laws. Woodbridge's argument relies on another federal law, the Eletronic Funds Transfer Act, which does not specifically preclude the fees
According to the OCC's brief: "If the ordinance were to become effective... national banks would be faced with the option of providing free services in Woodbridge -- possibly subsidized by account holders or by fee-paying customers elsewhere -- or of terminating service to non-account holders. Neither result would favor the public interest."
