ATM fees resurface as legislative issue as 1998 session opens

Northwestern Financial Review, Jan 24, 1998

Minnesota Attorney General Hubert Humphrey III and other DFL leaders conducted a press conference Jan. 14 at the State Capitol to draw attention to their effort to ban ATM fees during the 1998 legislative session, which opened Jan. 20. The Minnesota Bankers Association immediately responded with a press release urging lawmakers to leave ATM pricing to the marketplace.

"This nickel and diming of the consumer has to end," Humphrey said at the news conference. "It's a rip off and it really rubs wrong." Humphrey said bank profits on ATM transactions exceed $2 billion per year. Humphrey is one of several Democrats running for governor of Minnesota.

Also at the press conference were House Speaker Phil Carruthers and House Majority Leader Ted Winter.

"Consumers can choose if they want to pay a fee or not," said Wes Ehrecke, executive vice president of the Minnesota Bankers Association in a Jan. 15 press release. "This is another area in which additional government control is not necessary.

" This is not an issue in which state government should be involved," Ehrecke continued. "It is clearly a consumer choice issue. If consumers do not use a particular ATM because of the surcharge shown, that ATM will become unprofitable for the owner."

As this issue goes to press, the Independent Community Bankers of Minnesota was assessing its position on the issue.