RECOMMENDATIONS

RECOMMENDATIONS FOR CONSUMERS

Fees for ATM use have been increasing faster than the rate of inflation 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.

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.

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 consumers 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 fee.

If you must use an ATM that surcharges, ATM fees are assessed per transaction, regardless of the amount of money involved. Withdrawing larger amounts of money means less transactions and less ATM fees.

Go to a teller instead of an ATM.

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

Consider a Credit Union.

Consider banking at a credit union, not a bank. If you do not qualify to join a member-owned credit union, then consider banking at a community bank, especially one that is a member of a "Selective Surcharge Alliance" and pools its ATMs with those of other banks that do not surcharge each others’ customers.

Contact your Elected Officials.

Contact your elected officials and urge them to pass pro-consumer banking legislation to make it efficient and easy to shop for banking services in New York and to make those services fair and affordable for all New Yorkers.
 

RECOMMENDATIONS TO LEGISLATORS

Passing legislation to ban ATM surcharges in New York City.

A pro-consumer bill pending in the New York City Council that, if passed into law, would ban ATM surcharges follows:

Intro. 680 (Vallone) - a bill introduced by the Speaker of the New York City Council. The Council should schedule hearings and a vote on this important bill.

Passing the following pro-consumer New York State Legislative Proposals.

• A.76 (Greene) would prohibit ATM owners from surcharging non-customers. The bill does not have a Senate sponsor.
• A.7512-B would require banks to provide their customers with monthly and annual information on the aggregate total of the amount of ATM surcharge fees charged to that customer’s account. The bill does not have a Senate sponsor.

Passing the following pro-Consumer Congressional Proposals.

• H.R.3229 (Sanders-I-VT) - Introduced 14 Nov 99, would ban ATM surcharges.
• HR 3494 (Sanders-I-VT) - Introduced 18 Nov 99, would clarify that no federal law supercedes Electronic Funds Transfer Act (EFTA) provision clearly granting states and localities authority to ban ATM surcharges.
• HR 3503 (Waters-D-CA) - Introduced 18 Nov 99, would ban ATM surcharges, would enact low-cost lifeline banking requirements and would reinstate Federal Reserve Board Annual Report to Congress on bank fees that was allowed to sunset in 1999.
   
  

RECOMMENDATION TO THE NEW YORK STATE BANKING DEPARTMENT The Banking Department should collect and post on its web site and through a toll free number, the features, charges and fees for checking and savings accounts, as well as "off-us" ATM fees, for banks located in New York State.

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