[Congressional Record Volume 144, Number 40 (Wednesday, April 1, 1998)]
[Senate]
[Page S2965]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                      DOUBLE CHARGING FOR ATM USE

  Mr. D'AMATO. Two years ago today, the Nation's two largest electronic 
banking networks, Plus and Cirrus, better known as MasterCard and VISA, 
lifted their longstanding ban on the practice of double charging ATM 
users. They had a ban; it was not permitted.
  Now, since that fateful April Fool's Day in 1996, the joke has been 
on the consumers, and it has been a costly joke. They have had to shell 
out billions of dollars just to take their own money out of the bank.
  Today, I hold up a report ``Big Banks, Bigger ATM Fees'' from the 
U.S. Public Interest Research Group. In that report they indicate that 
double chargers in 28 States and the District of Columbia have shown 
that 71 percent of all banks today are double charging consumers for 
the privilege of getting their own money out. That percentage is more 
than twice the number reported by the General Accounting Office in May 
of 1997. So, more and more people have less and less opportunity to be 
able to withdraw their money without that double charge.
  Going further, it says the price of the average double charging has 
also risen to $1.23. Keep in mind this charge is on top of a fee that 
the consumer already pays to his or her own bank. The survey found that 
83 percent of the banks charged their own customer an average of $1.18 
per transaction whenever they use another ATM. So that means a consumer 
pays $2.41, on average, every time they use an ATM that does not belong 
to their own bank.
  So what we have, if a person uses an ATM six times a month --a 
relatively small utilization--they can be paying an average of $173 a 
year more. What an April Fool's joke on the people of America.
  This situation is not going to get better; it is going to get worse. 
What a windfall for the large banks who are now making profits of over 
$3 billion a year by charging people twice to get their own money.
  I am not going to say more about this except to say we will be voting 
on this issue. Make no mistake about it, we will be voting. When that 
amendment comes to the floor--and I will pick what I consider to be 
legislation that must be acted on--there will be hoots and hollers, why 
on this bill? But make no mistake about it, the people are entitled to 
know where their representatives stand with respect to this issue.
  To date we have 10 cosponsors, evenly divided between Democrats and 
Republicans. I know the power and the pressure of those who oppose 
this, but I think it is about time we began to look at the little guy, 
and I'm talking about the American taxpayer.

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