Bank of America is to restore ATM service to non-account holders in Santa Monica following suspension of a City Council measure prohibiting banks from levying charges for cash machine useage.
When the ordinance took effect last November, Bank of America, with Wells Fargo and the California Bankers Association, challenged it in federal court. At that time, Bank of America also limited use of its 21 ATMs in Santa Monica to its own account holders.
The United States District Court supported the banks' arguments stating that the local ordinance was pre-empted by federal law and ordered the city to take action to suspend it. The City of Santa Monica has filed an appeal in the Ninth District Circuit Court.