Wednesday, March 21, 2007

MP looking into ATM fees


By Richard Rolke BLACK PRESS Mar 21 2007 Salmon Arm Observer

Okanagan-Shuswap MP Colin Mayes is calling on banks to be fair when it comes to ATM fees.
Finance Minister Jim Flaherty discussed the issue of automated teller machine fees with Canada’s big banks, and Mayes admits he is concerned about the levies. “It’s important that the government not be in the way of free enterprise but because of the charter the banks operate under, a valid question to ask is why they charge fees when banks don’t in the U.S.?” said Mayes. The fees for people using other banks’ machines for financial transactions can range from $1.50 to $2.50

Mayes isn’t suggesting that ATM fees be outlawed, but that they be implemented in a fair manner to customers. “People don’t have any option but to deal with banks and with the cashless society, we must deal with these machines,” he said. Earlier this year, the NDP called for automated teller machine fees to be eliminated. That brought a sharp response from the financial sector. “This is just typical NDP bank bashing and political rhetoric being made without a full understanding of the facts,” said Raymond Protti, Canadian Bankers Association president in a release. The CBA insists that banks pay a significant investment in automated networks and a fee is charged so the bank’s customers aren’t subsidizing non-members who use the machines. Flaherty suggested some banks will reduce ATM fees for lower-income Canadians. “It will be interesting to see what the minister comes up with and where the discussions will go,” said Mayes. “Banks need to make their case and are they taking a reasonable profit?”

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