As Congress moves to rein in Wall Street, measure will eliminate banks' double-dipping

WASHINGTON, D.C. - Today, Senator Tom Harkin (D-IA) introduced an amendment to help consumers facing rising fees at Automated Teller Machines (ATMs).  The amendment came as the Senate began debate on the financial reform bill.

"In recent years, Congress has acted to protect consumers by setting appropriate limits on the types of fees that financial institutions can charge consumers. However, one area that lacks these sensible restrictions is the fees charged to consumers for using Automated Teller Machines (ATMs).  Consumers are being charged ATM fees that are well in excess of the cost of providing services, in some instances, as much as $5 per withdrawal.  These fees are outrageous, are anti-consumer, and they need to be reigned in," said Harkin.

Senator Harkin's amendment would require the new Consumer Financial Protection Bureau to ensure that fees charged to consumers at ATMs bear a reasonable relation to the cost of processing the transaction. The best data available suggests that the cost of processing a transaction is no more than 36 cents today. For this reason, the amendment also sets a reasonable upper limit of 50 cents per transaction - ensuring that banks can continue to offer this service while protecting consumers from unfair fees.

"Under the current structure, banks charge consumers fees for using ATMs while also collecting fees from other banks.  This amendment restricts the double-dipping that benefits banks and costs consumers," said Harkin.  "Our mission in financial reform is to level the playing field for the average Joe.  My amendment goes to the heart of that mission, ensuring consumers are no longer victimized by unfair fees."

Prior to 1996 some card networks actually prohibited financial institutions from charging consumers a fee for using an ATM.  Instead, the costs associated with ATM transactions were paid between banks and the processing networks. However, those restrictions were removed in 1996, and the Federal Reserve now estimates that nationwide, consumers pay an average of $2.66 to use ATMs.

The amendment is particularly relevant to Harkin's home state of Iowa.  Prior to 2002, Iowans did not pay fees for using ATMs.  But in 2002, this law was pre-empted by federal banking regulators, who have since not put any restrictions on the amount of fees that banks can charge.

The amendment is cosponsored by Senators Schumer and Sanders and is supported by the U.S. Public Interest Research Group, the Consumer Federation of America, Consumer Action, Consumers Union and the National Consumer Law Center on behalf of its low-income clients.

WASHINGTON, D.C. - Senator Tom Harkin (D-IA) today announced that Scott County has been awarded a $234,683 grant from the Edward Byrne Memorial Justice Assistance Grant (JAG) Program.  Harkin has been a steadfast supporter of the grant program, which funds many drug fighting initiatives across the state.  Harkin is a senior member of the Senate Appropriations Committee.

"The people who put their lives on the line for us deserve our support and our gratitude," said Harkin. "This grant will help to keep them on the job, working to keep drugs off the street and our communities safe."

Details of the grant are as follows:

$234,683 to Scott County for the HIDE Unit, operating under the Quad Cities Metropolitan Enforcement Group (QCMEG). The county's goal is to reduce the amount of illegal narcotics available to the public and arrest those who distribute illegal narcotics.

The Byrne Grant Program, named after a police officer killed by a violent drug gang twenty years ago, is the only source of federal funding for multi-jurisdictional efforts to prevent and fight crime.  The program funds drug task forces that have been vital in reducing methamphetamine labs in Iowa and around the country. Byrne also helps pay for police, technology and crime prevention programs. The grants have resulted in major innovations in crime control, including drug courts, gang prevention strategies and prisoner reentry programs.

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WASHINGTON, D.C. - Senator Tom Harkin (D-IA) announced today that a total of $1,990,572 in funding from the American Recovery and Reinvestment Act (ARRA), also known as the Economic Recovery Package, has been released to Davenport and Bettendorf from the Federal Transit Administration (FTA).  Harkin is a senior member of the Senate Subcommittee that funds transportation initiatives.

"Strengthening our municipal transit systems helps our citizens get around more efficiently and, at the same time, boosts the growth of Iowa's economy," said Harkin.  "These funds will allow the people of the Quad Cities to more easily get to work and run errands."

The Economic Recovery Package, signed into law by President Barack Obama on February 17, 2009, includes $36 million for transit capital improvements in Iowa.  This law implements the transit formula program related provisions of the ARRA and provides program and grant application requirements for these funds, to be made available through Federal Transit Administration (FTA) assistance programs.

Details of the grants are below.

Bettendorf- $539,497 to purchase three 30 foot ADA compliant, medium duty buses
Davenport- $1,451,075 to purchase four 35 foot light duty transit buses


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