Recently, several cities have passed resolutions to ban the ATM surcharge. This February, the city of Woodbridge, NJ joined Santa Monica and San Francisco in banning surcharges. Local Rebellions Against Unfair Surcharge Spread. The report summarizes the status of surcharge legislation in states and cities around the nation. In November, a US District Court judge blocked implementation of their bans, which are on appeal to the Ninth Circuit Court of Appeals.
Local bans are under consideration in the councils of New York City and Chicago.
In February, Iowa petitioned the U.S. Supreme Court to review a decision overturning its broad ATM regulations over state banks, which had included an administrative ban on surcharging. While Connecticut's ban was overturned by the state Supreme Court in December, its ruling only narrowly held that the Banking Commissioner had overstated his authority when he had banned surcharging in 1995. A legislative surcharge ban supported by state Attorney General Richard Blumenthal has cleared a joint House-Senate committee and is being prepared for House floor action. The report examines the legal case for state action and details how the 1978 Electronic Funds Transfer Act, which governs ATMs, explicitly allows states and cities to regulate ATM fees. The report also describes the anti-competitive nature of ATM surcharging, which has allowed banks to continue to raise fees.