WASHINGTON - After more than two years of working through district courts and appeal courts, the Iowa Superintendent of Banking, state Attorney General Tom Miller and other interested parties have reached the end of the litigation road in the case involving states' authority to regulate ATM transactions. On April 24, the U.S. Supreme Court announced it would not hear the state's appeal of the Eighth Circuit U.S. Court of Appeals September 1999-decision in favor of Bank One of Utah in the case of Holmes Foster, in his official capacity as Superintendent of Banking and Administrator of Electronic Transfer of Funds, Iowa Division of Banking, Iowa Department of Commerce v. Bank One, Utah, National Association. As a result of the Supreme Court's decision, a portion of Iowa's Electronic Funds Transfer Act (EFTA) concerning ATM law will be enjoined. In addition, the Court of Appeals injunction against the state Superintendent to allow Bank One's ATMs to operate in Iowa remains in effect. The case now returns to Federal District Court where the balance of the state law, including the prohibition against ATM surcharges and the requirement of universal, non-discriminatory access (so that all ATM cards must work in all ATM machines in Iowa) still has to be decided. Bank One is challenging the state's requirement. Earlier this month, attorney's general for 40 states and one commonwealth filed an amicus brief with the U.S. Supreme Court to hear the case. The Iowa Credit Union League, Iowa Bankers Association, Iowa Independent Bank and Iowa's Community Bankers filed a similar amicus brief with the Supreme Court (CU Times April 26). Commenting on the Supreme Court's decision, Iowa Attorney General Tom Miller said "we intend to continue to defend Iowa's law in the interest of fairness to consumers and all financial institutions in Iowa." -
ekingoff@cutimes.com
