2 Banks in Fee Dispute Restore ATM Services

SANTA MONICA — Bank of America and Wells Fargo announced Thursday that ATM service is being restored to non-account-holders in Santa Monica this week after both banks blocked such use for nearly a year to protest a city ordinance designed to stop ATM fees.

Service was scheduled to be restored at 12:01 a.m. today at 21 Bank of America automated teller machines. Wells Fargo restored service in the 12 Santa Monica machines at 6 a.m. Thursday.

The decision by the nation’s two largest banks followed Santa Monica City Council’s suspension of an ordinance that barred ATM fees for users who do not hold accounts at Bank of America and Wells Fargo. Those fees, which average about $1.50 per transaction, will continue to be charged, bank officials said.

In July, a federal judge in San Francisco ruled that Santa Monica and San Francisco violated federal law by trying to block the banks from charging fees to people who use automated teller machines but don’t hold accounts there.

The judge ordered Santa Monica to suspend its ordinance and prohibited the passage of a similar city law pending in San Francisco.

Both cities have appealed that ruling and a decision is expected next year.

“When they shut out non-account-holders, it was nothing more than a publicity move to try to turn publicity against the city for its consumer protection law,” said Adam Radinsky, Santa Monica deputy city attorney.