What federal law requires a bank to charge for using an ATM card more than four times a month?

hewwy12: What federal law requires a bank to charge for using an ATM card more than four times a month?
My sister is being charged for using her own money in affect because she used her ATM card more than four times a month, eight times in all, and the bank is charging her 10 per each transaction after the fourth one.
She Was told by the teller that its a federal law that they have to comply with so. I’m really curious as to what federal law this is, and why its in place.

Answers and Views:

Answer by OSCAR
No such law. Check with the bank (by phone) to check if it is actually bank policy.

Answer by acermill
There is no such federal law. The bank teller is misinformed. If your sister must pay after four uses per month, that is a BANK policy, and it is just one more way for them to garner additional revenues.

Answer by jhuss1256
I have never heard off any law that tells any bank that they have to charge for something. Only laws that tell them that they can’t charge certain fees and such. Tell your sis to talk to the manager, call the customer service # or change banks. Somehow, it could be something to with the kind of account she has. Check her account info!

Answer by MVD34
Two points.

Assuming it is a checking account: not federal law. bank policy.

If it is a money market account with atm/checking: Federal regulation, enforced by banks because it is in their favor. Many institutions do not charge for such. The regulations do not require the bank to CHARGE for the “over” use. Note the distinction. Tell your sister to double check the kind of account she has and move her money to a credit union.

Answer by I Love Richard KHC
The bank teller doesn’t know what she is talking about. Their is no law, I’m sure their is a law that says they can’t charge you for those first few, or else they probably would be. They try and get money from you any way that they can.

Answer by Doctor Deth
why does she use the ATM that much? take out money once a week and there is no cost

there are no federal laws – only individual banks policies which she should have seen in writing when she opened her account

lots of banks do that – she probably pays no monthly service charge and in exchange for that, she is limited to free ATM withdrawals