From Augusta: Lowering costs, protecting older Mainers and retirees from fees for paper statements

These days, things are just too expensive. We feel it at the grocery store and at our kitchen tables. Recognizing this, I remain committed to helping cut costs where I can, and I'm pleased to write that I presented one of my bills to help lower everyday costs for Mainers last week.

Before the Joint Standing Committee on Health Coverage, Insurance and Financial Services, I introduced my bill LD 580, "An Act to Protect Maine Consumers by Prohibiting Fees Charged for Receiving Paper Statements from Financial Institutions and Credit Card Issuers." It seeks to help Mainers, especially older Mainers and retirees on fixed incomes, breathe a little easier.

Like other bills I am working on, it was inspired by a constituent, and I am grateful they contacted me. They made me aware of a troublesome issue here in Maine — some financial institutions and credit card companies charge fees for customers who decline to opt in to paperless statements. Some retail store credit cards that charge these fees are not disclosing them up front, surprising folks when they receive their first statements.

These fees negatively affect older, retired Mainers who live on fixed incomes, as well as Mainers who do not have access to computers or the internet. I am concerned about these fees in Maine, which as we all know is a largely rural state with one of the oldest populations in the country.

In his testimony submitted to the public hearing for the bill, John Brautigam of Legal Services for Maine Elders wrote, "For many consumers, particularly older adults and those in rural areas, paper statements are not a luxury, but a necessity." Not everyone can elect into digital services, like paperless financial statements.

As Mainers are managing their household budgets, they should not have to make hard decisions between affording the basics — like clothes, food and medicine — and paying fees for paper statements. No one should have to pay additional fees for doing their basic banking, and LD 580 seeks to make this a reality.

Nationwide, only two states have broadly banned these fees so far: New York and Pennsylvania. Massachusetts has a similar law, but only for those under 18 and over 65. LD 580 would make Maine the third state to ban these fees for everyone, regardless of age. The bill is modeled on the legislation from New York that prohibits financial institutions and credit card companies from charging customers for receiving paper statements.

As I worked on drafting the bill, I ensured that it did not prohibit incentives for bank and credit card customers to switch to paperless statements. Instead, it prohibits additional fees for customers choosing to receive paper statements in the mail. Paper statements are a basic service that banks and credit card companies must offer to their customers — without an added cost to the consumer.

And, to be clear, these fees are more than the reasonable cost of doing business for a bank or credit card company. In fact, the average cost for producing paper statements is approximately $0.75 while the fees charged are often $1.99 or higher.

As there is not a federal law that bans this unfair business practice, it is incumbent upon Maine state law to protect Maine consumers from these fees. LD 580 would offer some financial relief during a time when Mainers are facing many difficult financial decisions in their lives. Let us eliminate this unnecessary fee that banks and credit card companies are passing onto their customers.

If you have been charged fees like these and you feel comfortable sharing your story with me, please reach out. You can send me an email at [email protected] or call my Senate office at (207) 287-1515. Your stories could help me persuade my colleagues, regardless of their district or party affiliation, to support this bill to lower everyday costs and protect consumers.

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