WTNH News Channel 8 / News / 1999

	Banks Oppose Proposed Ban on ATM Fees (Hartford-AP) _ Consumer activists are urging lawmakers to support a bill that would bar banks from charging an extra fee to non customers to use their automatic teller machines. Banks, meanwhile, attacked the bill Thursday as unfair and damaging to the state economy. The public hearing before the Banks Committee marked the latest debate in the three-year battle over ATM surcharges. Banks may charge their own customers for using another bank's ATM; the fees usually range from $1 to $2. At issue is whether the second bank may also charge a fee. The issue has bounced in and out of state and federal courts; currently, non customer ATM surcharges are not allowed while a federal court mulls the issue. Attorney General Richard Blumenthal, who has fought the ATM fees in the courts, said the state has the right to ban the fees, just as it has the right to pass laws to protect consumers. "It would not be the first fee to be regulated in the banking industry," Blumenthal said. Banks see the surcharge ban as unfair price control. Tom O'Brien, regional president for First Union bank, said the surcharge battle has "sullied Connecticut's reputation as a place to invest capital and create jobs." Rather than ban the fee, First Union would prefer to make it clear on ATM screens that non customers face a surcharge. After non customers are notified, they will be given the choice of whether to proceed, O'Brien said. "The marketplace is the best judge. If people don't like my services, they'll close their accounts," he said. But Committee Cochairman Rep. Robert Landino said ATM users are not notified that they are really being charged twice. Customers also are not notified that banks already have an internal system to charge one another for the cost of non customer use of ATMs. If those charges are not enough to cover banks' costs, the charges could be raised, said Landino, D-Westbrook. Sen. Win Smith of Milford, the ranking Republican on the committee, said the bill breaks with the Legislature's usual caution in regulating fees. He also questioned whether the bill would really benefit consumers if it drives banks and competition out of Connecticut. Today's News Page. WTNH Home Page. ©1999 WTNH/WTNH-DT A LIN station.

Banks Oppose Proposed Ban on ATM Fees
(Hartford-AP) _ Consumer activists are urging lawmakers to support a bill that would bar banks from charging an extra fee to non customers to use their automatic teller machines.

Banks, meanwhile, attacked the bill Thursday as unfair and damaging to the state economy.

The public hearing before the Banks Committee marked the latest debate in the three-year battle over ATM surcharges. Banks may charge their own customers for using another bank's ATM; the fees usually range from $1 to $2. At issue is whether the second bank may also charge a fee.

The issue has bounced in and out of state and federal courts; currently, non customer ATM surcharges are not allowed while a federal court mulls the issue.

Attorney General Richard Blumenthal, who has fought the ATM fees in the courts, said the state has the right to ban the fees, just as it has the right to pass laws to protect consumers.

"It would not be the first fee to be regulated in the banking industry," Blumenthal said.

Banks see the surcharge ban as unfair price control. Tom O'Brien, regional president for First Union bank, said the surcharge battle has "sullied Connecticut's reputation as a place to invest capital and create jobs."

Rather than ban the fee, First Union would prefer to make it clear on ATM screens that non customers face a surcharge. After non customers are notified, they will be given the choice of whether to proceed, O'Brien said.

"The marketplace is the best judge. If people don't like my services, they'll close their accounts," he said.

But Committee Cochairman Rep. Robert Landino said ATM users are not notified that they are really being charged twice.

Customers also are not notified that banks already have an internal system to charge one another for the cost of non customer use of ATMs. If those charges are not enough to cover banks' costs, the charges could be raised, said Landino, D-Westbrook.

Sen. Win Smith of Milford, the ranking Republican on the committee, said the bill breaks with the Legislature's usual caution in regulating fees. He also questioned whether the bill would really benefit consumers if it drives banks and competition out of Connecticut.

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