Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, April 27, 1995 TAG: 9504270054
SECTION: BUSINESS PAGE: C-8 EDITION: METRO
SOURCE: FROM STAFF AND WIRE REPORTS
DATELINE: CHICAGO LENGTH: Medium
The bank said Wednesday it plans to impose the charge on June 1, adding that it hopes the fee will encourage customers to use less-costly automatic teller machines instead.
Customers can escape the $3 teller fee by keeping a minimum of $250 to $750 a month in their accounts, depending on various programs the bank offers, some of which carry separate monthly fees of $7 to $20.
``This is the wave of the future,'' said Leo Mullin, First Chicago president and chief operating officer.
That assessment was disputed by several Virginia banks.
"We don't have any plans like that ourselves," said Cheryl Jenkins, spokeswoman for Crestar Bank. "It was tried some years ago by Citibank, and it was a disaster."
Teri Temples, spokeswoman for Signet Bank, said the idea has been discussed in the industry and Signet "chose not to take that course of action." Signet wants to provide customer service, she said, and a large number of customers prefer to come to a branch.
First Union National Bank of Virginia spokesman David Scanzoni described his company's position as "high tech, high touch."
The bank, he said, "believes strongly in human contact," especially since it started emphasizing investment products such as mutual finds. The bank likes to have "trained, skilled individuals to answer questions."
Some people like automated teller machines while others prefer to visit a branch to do business with a human teller, he said. First Union, he added, is committed to meeting the needs of all of its customers.
Consumer groups blasted the Chicago bank's move, saying it will hit teen-age, elderly and disabled customers the hardest.
``It's a stupid way to earn customer trust,'' said Ed Mierzwinski, a consumer advocate with the U.S. Public Interest Research Group.
Added Stephen Brobeck, executive director of the Consumer Federation of America: ``We're sure that $3 is a carefully calculated figure. ... It's about the limit people will pay before they pick up and go somewhere else.''
The bank also will offer a basic checking account with no minimum balance or monthly fees as long as customers make all transactions at ATMs. The bank said it was not certain whether the change would mean tellers would be laid off.
by CNB