For Immediate Release
May 18, 2000
Please Contact: Colin Durrant (617)722-1650 or
Dalié Jiménez, 617-722-1650

Responding to consumer complaints of skyrocketing bank fees, State Representative Jarrett Barrios today filed legislation that would require state approval for any new fees. At a press conference, Barrios was joined by Secretary of State William Galvin, citizen activists, and other legislators in declaring that the government had a clear need to step in to protect consumers.

“The creation of mega-banks through recent mergers creates a clear need for the government to protect consumers from unfair bank fees,” explained Representative Barrios. “These mega-banks, such as FleetBoston, are virtual monopolies, with a clear dominance of the market that gives them free reign to gouge consumers with fees and penalties.”

The “Bank Fees Fairness Act” would require that the Division of Banks to approve any new fees for federally insured consumer checking and savings accounts, and fees and penalties related to these accounts. For approval, a bank must show any new fee or penalty to be justified by either showing increased administrative costs, part of deterring consumer misuse of a service (such as a penalty for bounced checks), or meeting state and federal standards for financial stability.

“New England is subjected to the dominance of one major bank,” said Bruce Marks, CEO of the Neighborhood Assistance Corporation of America. “Due to Fleet’s monopoly control, they have been able to set the standard of charging outrageous fees on working people for virtually every service and transaction. This act will stop the monopoly exploitation.”

Representative Anne Paulsen, one of the bill’s 21 co-sponsors, added: “It’s hard to believe what we’re witnessing: Fleet negotiates a takeover, pays millions to the corporate executive for their business acumen, and then denies access to their poorest customers by charging them for their small transactions.”

Secretary of State William Galvin joined in supporting the legislation, saying, “The Citizen Information Service in my office has received numerous complaints from bank customers about excessive and confusing fees and charges that banks have imposed on them. The nature and number of these complaints lead me to believe that this legislation is necessary and I strongly support it.”

Eric Weltman, of Citizens for Participation in Political Action (CPPAX), argued, “When corporate greed and unfair power is harming Massachusetts residents, the state can and should take action.”

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