MADISON, Wis. - Despite threats from bankers to cut off ATM service to non-customers, the state's Privacy, Electronic Commerce, and Financial Institutions Committee Feb. 2 passed S.B. 325, a bill sponsored by state Sen. Judith Robson (D-15) that would "prohibit a state, national, or federal financial institution from charging a person a fee for a transaction using an ATM, unless the transaction relates to or affects an account held by that person with that financial institution." The vote was 3-2. Ron Halvorsen, president, Wisconson Credit Union League said the league testified against the bill in earlier committee hearings on the legislation because the measure does not apply to national or federal financials or to non-financials that own or install ATMs also known as "independent service organizations" (ISOs). "If the idea of the bill to to protect consumers from paying ATM fees, the bill doesn't address the entire problem," he said. "Legislation banning ATM fees could actually wind up hurting consumers. If credit unions had to pull their ATMs, they could be replaced with an ATM owned by an ISO or a national bank." About 90% of ATMs owned by credit unions in the state are part of the "CU Cash" Selective Surcharge Alliance and about 60 of these are owned by credit unions that selectively assess surcharges from non-alliance members. Even if the state legislature amends S.B. 325 to include national or federal banks, Halvorsen isn't sure he will support an ATM surcharge ban. "Three years ago, this question was a no-brainer," he said. "Now surcharging is almost a way of life. I can't be sure what my position would be if the bill was changed." -
ekingoff@cutimes.com
