Congress: Cap ATM fees at 50 cents

[cal04]

http://politicalticker.blogs.cnn.com/2010/05/15/congress-cap-atm-fees-at-50-cents/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%20%3Cimg%20src&fbid=P6-tRRJtWbC

As Congress debates the new rules of the road for the U.S. banking industry, some lawmakers have an ambitious proposal: They want to cut ATM fees.

Last week, a trio of Democratic senators led by Iowa's Tom Harkin proposed capping automated teller machine fees at just 50 cents.

Currently, banks and other ATM operators are free to charge consumers whatever they want for using their machine. And backers of the amendment maintain that those who tend feel the brunt of those fees are lower- and middle-income Americans, precisely those who can't afford it.

[MannyGoldstein]

1. What About Ending Credit Card Usury?

I guess that would harm the bankers too much.

[rocktivity]

7. Yeah, wasn't there once a ceiling on how much interest ANYONE had to pay?

:headbang:
rocktivity

[Captain Hilts]

2. Here in Bethesda, Chevy Chase charges $3 but Bank of Am $2. nt

[elfin]

3. I use a local bank that rescinds all charges - and some are $3

when away from them - at least in the region - haven't tested out of state.

Check and switch to your own area.

I do have a couple of CDs with them, but not major.

Glad I left the too big to fail system.

Some hassle in changing automatic deposits/withdrawals etc., but didn't take as long as I had anticipated.

I wonder if the 50 cent provision goes through if my bank will take advantage of that.

[Raineyb]

4. Like it would pass. It'll get filibustered and there will be Democrats who vote to filibuster.

They're not all that interested in fixing a damn thing.

[tritsofme]

5. Lots and lots of ATMs would disappear.

The banks aren't going to provide something for nothing.

Zero chance of this passing.

[tomp]

8. is it really something for nothing?

don't all those atm's save teller time at banks, so they don't need to hire as many people? it seems conceivable that even with zero charge it could be a net positive for the banks to use atm's.

[whyverne]

10. Of course it saves them money! It's a racket. Just another way to take

your money. One of the first ATM companies was MAC. You might remember them. It was their policy that a bank could not charge fees if they joined their network. Of course they got bought out. The good get bought out and nobody even knows the good that they tried to do.

[tritsofme]

11. And that is a reason most banks do not charge their own customers to use their ATMs.

The only reason ATMs are everywhere is because they are profitable. The machines aren't cheap, and I doubt they are cheap to service. There is no doubt if you limited fees to 50 cents that we would see the amount of ATMs in this country decrease in a huge way.

This never seems to be a problem for me. I use my bank's ATM, or get cash back at the grocery store. I probably haven't paid a fee in over a year.

[girl gone mad]

13. Something for nothing?

Nonsense!

When you give the bank your money, you have given them something. Forcing you to pay up to 15% in fees for the "privilege" of accessing your money is a scam.

And would it really be so terrible if we had fewer ATMs? Do we really need one on every street corner, convenience store, etc.?

This is the same type of argument those who support TBTF banks try to make. Where would we be without a Bank of America next to every Starbucks and dollar store? My guess is we would be better off economically.

My bank reimburses all ATM fees, btw. I can use my card at any ATM, anywhere in the world and not pay a dime in fees.

[tritsofme]

14. Again, most people aren't charged at their own banks.

You are paying a premium to access another bank's network.

Do we need ATMs everywhere? Why not? It seems to be convenient for people, or else they wouldn't be there.

[lpbk2713]

6. This is one of many reasons why I haven't been to my local mall in years.

It's probably been ten years or more since I have been to my local mall for various reasons. One being, when I wanted some cash out of an ATM I had to pay a dollar for the privelege, as opposed to a quarter at the local grocery store. I can only imagine what the charge must be by now. AFAIC malls need me a lot more than I need them and I can sure as hell get by without them in my life.

[Froward69]

9. Gee if this happens

I will possibly use an atm again.
as it is now those fees are the main reason I refuse to use my account card.

now capping interest rates and defining what "loansharking" is would a long way to getting my business back.

then again I like keeping my money. I spend it better than any bank does anyway.

[slampoet]

12. In Canada I took out money from my American bank. NO FEE

Even though i possibly lost a few pennies or dimes on the currency conversion, there was no charge from the Canadian Bank and ODDLY not charge from the American bank. If i hoped back into the USA and did this the transaction at the time would have cost me $1.50 from both banks.

When i asked about this i was told that Canada had outlawed such fees long ago, (This was back in 1998)

I wonder if it is still that way.