Legislation to cap bank fees is being pushed in the Minnesota Legislature by a consumer group.
The Minnesota chapter of the Washington, D.C.-based Association of Community Organizations for Reform Now is backing legislation that would limit bounced-check fees to $10 and prohibit banks with more than one automated teller machine from assessing surcharges.
"These fees have really knocked a lot of people," said Jordan Ash, banking organizer at Acorn, which represents low- and moderate-income consumers. "People are just fed up."
But bankers are vigorously lobbying lawmakers to kill the various bills, arguing that the marketplace-not activist groups or politicians-should dictate the future of bank fees.
"Somebody is trying to make a scapegoat of the banking industry," said Richard J. Roesler, vice chairman at People's National Bank in Mora and the president of the Minnesota Bankers Association. "I'm not saying the banking industry is lily-white, but if banks were taking advantage of people they wouldn't be in business very long."
A hearing on the ATM surcharge bill was held in the House of Representatives Jan. 28, and the bill to provide so-called "lifeline" savings and checking accounts was debated Jan. 26. The lifeline bill would also bar banks and thrifts from charging more than 50 cents for a money order or more than $3 in monthly maintenance fees. It would require banks to offer overdraft protection on all checking accounts with at least $200.
The House Finance Committee was expected to decide this week whether to send the measures to the House floor.
Acorn has been fighting for two years to eliminate ATM surcharges and slash bank fees in Minnesota, according to Mr. Ash. This year-an election year in Minnesota-sentiment is beginning to swing in consumers' favor, Mr. Ash said. "Politicians are lined up with the people, not the banks," he said.
But Diana Lee, executive director of the Minnesota League of Savings and Community Bankers, said limiting the fees that banks may charge would limit the number of ATMs available to consumers.
