RECOMMENDATIONS

RECOMMENDATIONS FOR CONSUMERS

Fees for ATM use have been increasing at an alarming rate and ATM owners may assess several different types of fees, including the unfair and unnecessary ATM surcharge. Consumers should fight back to reduce or eliminate ATM surcharges and other anti-consumer ATM fees.

•Use your own bank's ATM.

Signs on the ATMs surveyed indicated that the surcharges would be assessed only on ATM customers who were not customers of the bank that owned the ATM. Foreign ATM fees are also assessed only on bank customers who use an ATM owned by another bank or entity.

•Use only ATMs that do not surcharge.

Avoiding ATMs that surcharge not only saves you money, but also sends a message to the networks and the ATM owners that actively oppose surcharging. Often, shopping malls and plazas have several ATMs and consumers may avoid surcharges assessed by one ATM by checking out another - which may be located just a few feet away!

•Withdraw larger amounts of money, thereby reducing the number of times that you are charged a foreign fee and a surcharge fee.

If you must use an ATM that surcharges, ATM fees are assessed per transaction, regardless of the amount of money involved.

•Go to a teller instead of an ATM.

"Teller fees" are rare. However, check first to make sure you will not be charged one!

•Contact your bank to obtain the exact terms of your account.

Our survey showed that bank practices differ with regard to the amount of fees they charge and how they assess them depending on what type of account a customer has. Consumers should find out how much their foreign ATM and debit card fees will be for their specific type of account.

RECOMMENDATIONS TO LEGISLATORS

•Pass legislation to ban ATM surcharges, provide consumers with more information about bank fees and make banking more affordable in New York State.

Pro-consumer bills pending in the New York State Legislature that, if passed into
law, would ban ATM surcharges and strengthen pro-consumer banking practices include:

A.24 (Greene) would ban surcharges by prohibiting banks and other ATM owners from imposing a charge on non-customers for using their ATMs.

A.5693 (Engelbright) would require banking institutions to report to their customers on a monthly and annual basis the total dollar amount of ATM fees charged, posted and paid by the customer.

A.5694 (Engelbright) would prohibit ATMs located on SUNY and CUNY campuses from surcharging.

A.5695 (Engelbright) would bar the state from making deposits and having accounts with banks that impose ATM surcharges.

This legislation should be passed by the Legislature and signed into law by the Governor.

•Pass legislation to create a Financial Consumers Association.

Financial Consumers Associations (FCAs) are nonprofit, state-chartered organizations of consumers that (1) collect data and inform consumers about financial alternatives, (2) lobby state and federal legislators and regulators to pass consumer-friendly legislation and regulations, and (3) represent the broad interests of consumers in court cases and arbitration with financial institutions.

•Strengthen the state's basic banking law.

New York should strengthen and improve the state's "basic banking" law, which requires banks to offer low-cost checking accounts: A.2109 (Abbate)/S.1396 (Santiago) would allow unlimited withdrawal transactions for basic banking accounts and would require banks to post signs about the availability of the accounts. A.3880 (Perry) would require banks to post signs about the availability of low-cost checking accounts. These modest bills would be of great benefit to consumers.