N.Y. Council Chief Files Bill to Ban ATM Fees, Predicts Banks Will Sue

By Stock, Helen | American Banker, January 20, 2000 | Go to article overview

N.Y. Council Chief Files Bill to Ban ATM Fees, Predicts Banks Will Sue


Stock, Helen, American Banker


The war over automated teller machine fees added a major new front on Wednesday as New York City Council Speaker Peter F. Vallone followed through on a promise to introduce legislation that would bar financial institutions from levying noncustomer surcharges.

Backed by 17 council co-sponsors -- half the number needed for passage by the city's 51-member council -- Mr. Vallone said banks had been given "every opportunity" to propose alternative measures since he floated the idea of a ban last fall. Instead, he said, they put up a "stone wall," resorting to threats of a lawsuit.

The bill would put New York alongside two California cities, Santa Monica and San Francisco, in seeking to eliminate surcharges that banks impose on non-accountholders who use their ATMs. Mr. Vallone said he intends for the measure to become law within several months.

Courts have blocked enforcement of the California ordinances since bankers there initiated litigation, and Mr. Vallone said he expects a lawsuit against New York should his bill be passed. A statewide ban on fees in Connecticut by the state's banking commissioner was also recently overturned.

Banks defend the noncustomer charges as a fundamental right and necessity. Though the "convenience fees" are a profitable source of revenue for many banks, they are also compensation for the costs banks incur to run and maintain the machines, they say.

Michael P. Smith, president of the New York Bankers Association, vowed Wednesday to be as "forceful as we can" in arguing against the measure. The trade group has never threatened a lawsuit, he said, and is optimistic that the door is still open for discussion with council.

"We're totally opposed to price controls," Mr. Smith said.

Consumers first saw widespread surcharging in 1996, when MasterCard and Visa's national ATM networks, Cirrus and Plus, dropped their bans on the practice.

The issue has emerged as a popular one for politicians and a convenient rallying point for consumer frustration over rising bank fees. It could draw attention because of what is expected to be a high-profile Senate race in New York State between New York City Mayor Rudolph Giuliani and First Lady Hillary Rodham Clinton. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

N.Y. Council Chief Files Bill to Ban ATM Fees, Predicts Banks Will Sue
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.