Noel advises consumers to check fees before using white-label ATMs

Government Services and Lands Minister Walter Noel is concerned about the increasing number of independent ATMs, also known as white-label ATMs, and the fees associated with their use.

Initially, such ATMs were found in non-traditional locations with lower transaction volumes. Operators compensated for the lower volumes by imposing surcharges on consumers, generally known as convenience fees. Figures provided by the Financial Consumer Agency of Canada show that, as of November 2001, independent operators managed more than one-third of all of Canada's ATMs.

Minister Noel said: "Depending upon the type of white-label ATM used and the withdrawal amount, a consumer could end up paying as much as 20 per cent to access his or her own money. I encourage all consumers to check out fees they are paying at ATMs, including the white-label machines, and to shop around for the best rates available.

"We are dealing with a rapidly changing marketplace. Every day, consumers face new ways of doing business and, often, these new ways result in added fees."

The minister has asked officials to determine just how widespread the use of these machines is in this province and what can be done to increase consumer awareness of costs associated with their use. He has also asked officials to have this matter placed on the agenda for the next meeting of ministers responsible for consumer affairs. Consumers who have concerns about white-label ATMs are asked to contact the consumer affairs division at (709) 729-2600.

Media contact: Rick Callahan, Communications, (709) 729-4860.

2002 03 15                          3:30 p.m.