12/09/09 - ATM fees: Uticans losing green. Mayor seeing red
Mayor Roefaro upset with 'overkill' ATM fees, writes Federal Reserve Chairman Ben Bernanke, asks him to 'address unfair fees'
Mayor warns higher fees will hurt uninformed Uticans this holiday season, offers solutions
December 9, 2009 – (Utica, NY) – Utica Mayor David Roefaro is making a deposit this holiday season in the suggestion box at the United States Federal Reserve, and writing their Chairman, Ben Bernanke, to decry what the mayor is dubbing 'overkill' fees, right here, in Utica, NY.
"The big banks, some of the same ones that received millions in bailout money, are taking advantage of Uticans with their overkill fees," the mayor said. "If you want $20, it could cost you $30 in some cases."
Roefaro is pointing to a Consumer Advocacy study conducted by Bankrate.com, which released a report saying the average fee for non customers who withdraw money from an ATM rose over 12% in one year. The same study also found that almost three quarters of banks penalize their own customers when they use other banks' ATMs.
U.S. Senator Charles Schumer brought up the study and its findings late last week at a Senate confirmation hearing, where Schumer asked Federal Reserve Chairman Bernanke to review ATM fees.
For the Utica Mayor's office, the ATM fee complaints are relevant, and as Mayor Roefaro found, they're also significantly impacting the wallets of his constituents.
"Residents call my office asking if I can 'talk to the banks'. Some residents have even brought statements in where they feel like they're being overcharged. It's even gone so far that one woman brought in paperwork that showed so many fees, we called her bank for her," the mayor said.
"For many of these Uticans, there is a language barrier in understanding the fees," the mayor said. "Refugees think these fees are normal, acceptable. It's sad. They expect them, as if the fees come with being an American," Roefaro said.
"I'm glad Senator Schumer has asked the Federal Reserve Chairman to look into this problem. Hopefully, my letter will offer a personal note to this growing dollar catching crisis," the mayor said.
Roefaro wrote in his letter, "Of major concern to me, and to my constituents, are the rising charges for withdrawing your own money from your own bank. This is an awful double dipping profit scheme employed by big banks. This is a profit generating tactic used to take advantage of the most vulnerable in our country- the elderly and our immigrants."
In Utica, the average ATM withdrawal fee is $1.32, and the punishment for withdrawing from a bank that's not your own varies between $2 and $3. Even worse, if you're withdrawing from a credit card- the total fee could rise to just around $15.
"I hope Uticans will take this information with them during the holiday season as they shop for loved ones. These fees aren't convenient. They're taking advantage of people, and there are ways to avoid them," the mayor said.
Roefaro points to some ways Uticans can avoid unnecessary fees this holiday season:
1) Talk to your bank about reimbursing your ATM fees, some banks will.
2) Most Credit Unions don't charge you for withdrawing from a bank that isn't their own.
3) Use your credit card while shopping. Don't simply use it to get cash you don't need.
4) The fee itself and the amount of the fee are disclosed on all ATMs prior to the consumer confirming the transaction. In addition, consumers are given the option to cancel the transaction without incurring the fee.
READ THE MAYOR'S LETTER- Click the PDF below:
