STRATEGIC PARTNERS
October 27, 2002
SAN FRANCISCO -- A federal appeals court on Oct. 25 threw out two California municipal bans on ATM surcharges collected by banks, saying local law takes a back seat to federal regulations on the fee issue.
The City Council of Santa Monica and San Francisco voters had no authority to approve identical laws in 1999 banning banks from charging ATM fees to noncustomers who used their ATMs, according to the ruling by the 9th U.S. Circuit Court of Appeals.
The 3-0 decision upholds a federal judge in San Francisco who blocked the ordinances from being enforced at the request of Bank of America, Wells Fargo Bank and others. (See related stories Calif. court backs injunction on ATM fee bans and Appeals court appears to support surcharges in Calif.)
The cities said they were considering whether to appeal to the U.S. Supreme Court or ask the appeals court to reconsider its decision.
Adam Radinsky, Santa Monica deputy city attorney, said federal regulations allow local governments or city voters to adopt such rules. "The ATM surcharge is an outrageous and duplicative fee that is unfair to consumers," he said.
