New Jersey Bill Would Prevent ATM Fees

Trenton, N.J. – New Jersey State Senator Richard Codey (D-27) has state-chartered credit unions and Credit Union Affiliates of New Jersey (CUANJ) up in arms regarding his bill that would prohibit state-chartered financial institutions from charging ATM fees. According to John Passuth, director of governmental affairs at CUANJ, Sen. Codey probably had some good intentions in creating the bill, but he does not realize the impact this will have on not-for-profit credit unions. "The purpose of the ATM fee is strictly for the maintenance of the machines and to cover operating costs," he says. "By taking away the fee, you are preventing credit unions from enhancing service to members. If passed, the bill could prevent state-chartered credit unions from offering ATMs to members." Passuth also fears the bill could dissuade federal credit unions from switching over and becoming state-chartered institutions. Passuth is in the process of setting up a meeting with Sen. Codey's chief of staff to brief him on CUs' opposition to the bill. He is also contacting several large state-chartered credit unions to hear their concerns. Codey is the Legislature's top Democrat and president of the evenly divided Senate on alternate months.