ATM fees

Bank of America raised their ATM fees for non-members from $2 to $3 last week, and of course experts are predicting other major competitors will do the same shortly.

Although I’m not sure who think they they’re fooling, the bank claims they are doing this for the benefit of their customers. Here’s BoA spokesperson Betty Riess:

“We really want to make our ATM network convenient for our customers. In order to maintain that, it is appropriate to charge people who aren’t our customers for accessing our convenience.”

Now, many people are seeing though this faulty logic, but my favorite reaction to the news comes from economist Andrew Leonard:

“Oh, really! Let me get this straight: The goal of the fee hike is to reduce the number of people using the network, and not to increase the profits generated by the network.

The gods scream balderdash.

Here's the deal. We deregulate the banking industry so the big guys can buy up all the little guys, and thus reduce competition. Then we forbid states from protecting consumers, by limiting that power to the federal government. And then, we stand by and watch as the banking industry consolidates its control over its own regulators, who then proceed to ensure that nobody gets in the way of their rapine and pillage.”

Leonard explained that even though a few brave cities and states have tried to ban ATM surcharges, district and appellate court rulings struck down the bans claiming the states don’t have the rights to tell national banks what to do. So much for consumer protection.

When it comes to bank fees, ATMs may be the easiest to avoid. So plan ahead, use cash back and avoid the ATMs of other banks At All Costs!

Here’s the full post of Leonard sounding off: http://www.salon.com/tech/htww/2007/09/14/atm_fees/index.html