Schumer: A Fast Stop At The Corner ATM Could Eat Your Lunch Money

Press Release

Today, U. S. Senator Charles E. Schumer called on the Consumer Financial Protections Bureau Director Richard Cordray to address the growing problem of consumers being hit with outrageous ATM fees when withdrawing money from out-of-network ATM terminals. Schumer pointed to a new industry report that says ATM fees have jumped 21 percent over the last five years, continuing a troubling trend of the past decade. At an average of $5.03--and as high as $8--New Yorkers are now paying the second highest average ATM fees in the nation. Nationally, the average ATM fee is at a record high of $4.52 per transaction. Schumer said that consumers should not have to pay more, potentially as much as $8, when withdrawing their own, hard-earned money before they even receive their receipt.

Before holiday shopping season is in full force, Schumer is urging the federal government to investigate this pernicious practice. Schumer is calling on the CFPB to crackdown on exorbitant out-of-network ATM fees and launch a federal probe into these indiscriminate fees that have been rising for years. In fact, according to the Federal Deposit Insurance Corporation (FDIC), U.S. banks collected over $34 billion in fees just last year, which includes fees paid by ATM users.

"When it comes to ATMs and the service they provide, we have somehow gotten to the point where a fast stop at the corner could eat your lunch money," said Senator Schumer. "Consumers from New York and across the country shouldn't be forced to fork over up to $8, when trying to withdraw $20 of their own, hard-earned money. As holiday shopping season fast approaches, the CFPB should launch an investigation into the overall problem of rising and indiscriminate ATM fees, which have skyrocketed more than 20 percent in the past five years. In today's economy, every penny counts and to charge individuals sky-high fees for accessing their own money--often when they need quick or unexpected cash-- is simply unfair and inappropriate."

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