Atm Fee Disclosure Bill Introduced

Two senior members of the House Banking Committee Wednesday introduced legislation requiring banks to disclose fees charged for the use of automated teller machines.

Reps. Marge Roukema, R-N.J., and Charles Schumer, D-N.Y., said the bill will let consumers make “an informed decision.”

Although the Congress probably will not have enough time to consider the bill before it adjourns at the end of the year, Wednesday’s action suggests that the issue is a high priority for committee members and is likely to come up again next year.

“This is a pro-consumer bill,” Roukema said. “ATM operators should be allowed to charge a reasonable fee … but ATM users shouldn’t be asked to sign a blank check every time they take out their money.”

Under existing regulations, banks are required to disclose ATM surcharges to customers, either on a sign or on-screen. Roukema said her bill would make both types of disclosure required.

In addition, the bill would require the Federal Reserve to develop a database of ATM surcharges and report information on pricing trends to Congress annually.

The bill would also require the General Accounting Office to study the feasibility and costs of requiring ATM operators to disclose fees imposed by both the ATM operator and the customer’s own bank.

Schumer noted that 3 out of the 10 largest U.S. banks are levying $1 surcharges on ATM transactions.