A Florida lawmaker has introduced a bill that would make it illegal for banks operating in the state to charge customers monthly fees for using their debit cards.
The legislation sponsored by Rep. Jeff Clemens is aimed squarely at large banks, such as Bank of America Corp. and Wells Fargo & Co., that soon intend to charge monthly usage fees to make up for lost income from new caps on interchange fees that took effect Oct. 1.
In a news release Monday, Clemens said, "Banks sold us all on the idea of a cashless society, and now that we've bought into their promise of free, easy access to our own money, they want to charge us for it Anyone with a sense of decency should be outraged."
But Clemens, a Democrat, faces two huge hurdles in his efforts to block big banks from imposing the fees.
First, he must get his bill through a state legislature dominated by Republicans. Second, even if lawmakers were to pass the legislation, federally chartered banks are typically not subject to state law.
Clemens, though, said he believes the law could be enforced, citing a 2009 Supreme Court decision in Cuomo v. Clearing House Association, that gives states legal authority over national financial firms in certain instances.
"It's been a long-held belief that states don't have the right to regulate federal banking institutions," Clemens said. "The Cuomo case and the Supreme Court say differently."
