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The battle over ATM fees moves to the federal arena -- again -- as Rep. Bernie Sanders introduces two new anti-surcharge bills.by Ann All, editor
December 5, 1999
D'Amato is gone but apparently not forgotten. His heir apparent in Congress is U.S. Rep. Bernie Sanders, who on Nov. 4 introduced a bill that would let cities and states limit the fees banks charge customers for using ATMs. San Francisco voters earlier this week overwhelmingly approved a ban on surcharges at bank-owned ATMs. It was the first time the issue had been presented in a public referendum. The Santa Monica City Council passed a similar ordinance that is slated to take effect Nov. 12., and bans remain in place in Iowa and Connecticut. Sanders, a Vermont independent who most often votes with Democrats, said the growing support for regulation of ATM fees at local and state levels will help build support for federal legislation banning surcharging. However, banks are challenging all of those bans in court, arguing ATM fees are regulated by federal law that cannot be changed by cities or states. A U.S. District Court hearing is set for Nov. 15 concerning the anti-surcharge proposals in San Francisco and Santa Monica. Sanders' bill would create a federal law explicitly granting states and cities the power to regulate ATM fees. Sanders also reintroduced a previously unsuccessful bill that would prevent banks from imposing surcharges on noncustomers who use their ATMs. "For too long, consumers have been getting ripped off every time they walk up to an ATM. ATM owners are charging consumers as much as $2 for the privilege of withdrawing $20. In addition, those ATM owners are charging the ATM user's own bank for the same transaction. Often this fee is passed on to consumers as well," Sanders said. He added, "At a time of record-breaking bank profits, it is time for the Congress to finally put an end to these outrageous fees. And if Congress won't stand up to the big money interests, they should get out of the way and let states and municipalities do the job, such as we saw in San Francisco." American Bankers Association spokesman John Hall said barring ATM fees will make it too costly for many banks to operate the machines. Some machines could be pulled, making it tough on consumers accustomed to the convenience of getting their cash in a hurry, he added. Hall pointed out that consumers can avoid the fees by using machines owned by their bank. "It is clear that the American public is sick and tired of being fleeced by the banking industry, and it is time for Congress to act," Sanders countered. "The growing support for a crackdown on these practices has made clear that the public wants Congress to move on this issue."
