Stop Whining About Three-Buck ATM Fees

Get over the lousy three bucks.

Americans for Fairness in Lending this week released its "Statement of Concern about Rising ATM Fees," expressing shock and dismay at Bank of America's(BAC) plans to increase ATM fees for noncustomers to $3.

The consumer group feared that "the ultimate consequence would be an unconscionable squeeze on low and middle-income bank consumers."

It's unclear how providing a service to noncustomers for a fee could ever amount to an "unconscionable squeeze."

Before ATMs existed, the only way to get money out of your bank account was to go to your bank. Now it seems that the consumer group and others signing the statement, including the Service Employees International Union, are trying to change a convenience service into an entitlement.

Bank of America boasts the largest ATM network in the U.S., with more than 17,000 branded machines. For now, the fee increase will affect about two-thirds of its ATMs. Machines at convenience locations, such as malls and airports, will not have their fees increased. Fees will also remain lower in Chicago, where LaSalle Bank (a unit of ABN-Amro(ABN)) is headquartered. Bank of America has just received regulators' approval for its pending acquisition of LaSalle.

Bank of America's stance on the fee increase is that continued investment in its ATM network is expensive, and it is only fair that noncustomers using the network pay for the service. A call to Bank of America requesting comment on its strategy and revenue expectations from the fee increase was not returned.

None of Bank of America's larger competitors, including Citigroup(C), JPMorgan Chase (JPM), Wachovia(WB) (WB) and Wells Fargo (WFC), have announced plans to follow suit.

Americans for Fairness in Lending has gone on the record in calling for Congress and bank regulators to place a cap on ATM fees. While consumer groups can make a pretty strong case that some bank fees for credit card late charges and bounced checks have gotten out of hand, there's simply no reason for nanny-state regulation of ATM fees.