2 Cities Appealing ATM-Fee Injunction

The cities of Santa Monica and San Francisco said they are appealing a court action that prevents their enforcing municipal ordinances prohibiting banks from levying ATM surcharges on non-customers. “The judge got the law wrong,” said Santa Monica Deputy City Atty. Adam Radinsky, who contends that cities have the right under federal law to pass consumer protection laws regarding automated teller machines. The two cities are the first in the U.S. to attempt to ban such ATM surcharges at banks within the city limits. Bank of America, Wells Fargo and others have sued, claiming the local ordinances violate federal banking law. Last month, U.S. District Judge Vaughn Walker issued a preliminary injunction suspending enforcement of the local laws until the banks’ suit can be heard. City officials said they hope their appeal to the U.S. 9th Circuit Court of Appeals will be heard on an expedited basis. Bank representatives said they remain confident that the city laws will be overturned.