April 28, 1999

HOUSE APPROVES BILL TO PREVENT ATM SURCHARGES

Legislation proposed by state Rep. Robert Landino (D-Westbrook) that would protect consumers from excessive user fees at Automated Teller Machines was approved Wednesday by the General Assembly’s House of Representatives. Among those voting in favor of the bill was Rep. Kevin Ryan.

The bill would prohibit banks and credit unions from imposing ATM fees on non-customers, eliminating the double charging that occurs between banks and consumers.

"This legislation is good for Connecticut’s consumers and I’m glad it has met with such support in the House," Rep. Ryan said.

Currently if a non-customer uses an ATM, the bank can charge both the non-customer and the non-customer’s bank. The cost for both charges is ultimately paid for by the consumer. The proposed ban allows banks to charge only one fee.

"It’s simply a matter of protecting consumers," Rep. Ryan said. "Banks should be compensated only once for the use of their machines by non-customers. There is no reasonable purpose for double-charging consumers."

The bill will now be considered for debate in the state Senate.

"I hope the bill is taken up by the Senate and receives the same support it did in the House," Rep. Ryan said. "The bottom line is it’s an important bill, it’s good for the state of Connecticut and it has received great support so far."

The bill supports both the current position of the commissioner of the state department of banking and his efforts to prevent double charging and litigation present and ongoing between State Attorney General Richard Blumenthal, several banks and the federal government.

"The premise that our department of banks has no say in any of the regulatory issues surrounding Connecticut-located banks is arrogant," Rep. Ryan said. "The legislature needs to support the commissioner of the state department of banking and the efforts of the attorney general’s office to ensure that our agency can protect consumers from unfair practices."

Rep. Ryan serves the towns of Bozrah, Franklin, Lebanon and Montville in the General Assembly.