Contempt Ruling Sought Against Santa Monica

Bank of America, Wells Fargo & Co. and the California Bankers Assn. have asked a federal judge in San Francisco to hold the city of Santa Monica in contempt for failing to fully implement a recent court ruling that overturned a city ordinance banning certain types of automated teller machine surcharges. The banks claim the city has failed to formally rescind the ordinance, which prohibits banks from imposing fees on non-customers who use their ATMs. Although the Santa Monica City Council passed a resolution last month to suspend the ordinance, banks say the action does not go far enough and, as a result, they fear they could still face lawsuits. Until the issue is resolved, BofA and Wells Fargo say they will continue to prevent non-customers from using their ATMs in Santa Monica. Deputy City Atty. Adam Radinsky said Santa Monica has complied with the judge’s order. The city made national headlines last year when it banned certain types of ATM surcharges. Under the law, banks were liable for up to $5,250 per violation. In June, a federal judge ruled that the ordinance violated federal banking laws. The city is appealing.