Niles being gouged by Huntington Bank fees, city treasurer says

NILES

Treasurer Janet Rizer-Jones said Thursday the city is being victimized by “exorbitant fees” by the bank handling millions of dollars in utility payments made by residents and businesses.

Tim Lintner, one of two state-appointed financial supervisors, identified the institution as Huntington Bank, and said he agrees with the treasurer’s description.

“I haven’t seen bank fees this high just for using your own money,” Lintner told the Financial Planning and Supervision Commission. The commission reviews Niles’ expenditures and revenue while the city remains in fiscal emergency.

Lintner said Huntington, one of two banks used by the city, “imposed the bulk of the charges.” The city also uses PNC Bank.

“Last year, the fees were $73,135, but this year, we’re on pace to pay [more than] $131,000,” Lintner told the commission. “For whatever reason, their fees have astronomically increased.”

Banks impose fees for credit payments of utility bills. City Auditor Giovanne Merlo said the fees vary with methods of payment such as credit cards, reward cards and merchant services.

“They told us they increased the fees because of the use of different payment methods,” Merlo said after the commission meeting. However Merlo and Rizer-Jones also revealed to the surprise of commission members that Huntington is paying little or no interest for the money that it holds before distribution to the city.

Read more about the situation in Friday's Vindicator or on Vindy.com.