NDP want ATM fees capped

The federal New Democrats are pushing the Harper government to put a cap on transaction fees people have to pay their banks when using a bank machine. The party says Canadians pay the highest transaction fees when compared to ten other developed countries. And the NDP say banks are ripping off their customers.

Right now, people can pay almost six dollars at a bank operated ATM. What the NDP would like to see is a cap of fifty cents and the party considers that fair since it only costs banks 36 cents to process a transaction.

It costs money to withdraw your own money from an automated teller machine. Lisa Simmons uses the ATM here on Barton Street in Hamilton several times a week. She says the transaction fees are adding up: “Probably about 10 to 15 dollars a week. A week? Ya for sure.”

She wouldn’t have to pay fees if she went to her own bank’s ATM, but she comes here because her nearest bank branch is a bus ride or cab ride away: “The banks all the way downtown or you’ve got to go all the way that way.”

The Canadian Bankers Association says customers have a choice. They can avoid ATM fees by going straight to their bank, but what if their bank is far away, especially in inner cities where many people are on fixed incomes? We took a drive eastward on Barton from Bay Street. The first bank we spotted from our starting point was a BMO, 31 blocks or just over three and a half kilometers away.

Jim Hill is another ATM user: “I used to have the bank here on the corner but they moved to the Centre so it’s stuck down there.”

Down there is the old centre mall location at Barton and Kenilworth where there are several banks.

NDP MP Glenn Thibeault: Canadian Banks are reaping record profits. $29.4 billion in 2013, up 5% from last year despite the weak economy because they’re doing it on the backs of hard working Canadian families.”

What some people may not notice when they’re doing a transaction at an ATM, unless they read the screen, is they’re actually being charged two fees. One by the operator of the machine which is usually $1.50 and on top of that what the bank charges them.

The NDP thinks the bank should only be allowed to charge, at most, 50 cents.

Adrian Blackwood only goes to a bank: “I think that’s the best idea ever. I mean any money, any idea to put money back in our pocket is great.”

Peter Piea simply won’t use an ATM at all: “You know you don’t have much money now, so I just won’t do it.”

The Canadian Bankers Association says more people are using their debit cards rather than cash to make transactions anyway. It says even fast food restaurants accept debit payment now when they didn’t before. Another option is people can get cash back at many retailers, with no fees attached.

The Prime Minister didn’t say Monday if he supports a crack down on transaction fees.