WASHINGTON – Legislation that would ease the current ATM fee disclosure regulations that are, in some cases, leading to bogus lawsuits against ATM operators will be the subject of a June 27 markup session, House Financial Services Committee Chairman Spencer Bachus (R-Ala.) announced Friday.
The ATM bill (H.R. 4367) has 95 co-sponsors.
CUNA strongly supports this legislation and has worked over the last several weeks to secure committee co-sponsors and move the legislation to markup, according to Senior Vice President of Legislative Affairs Ryan Donovan.
The bill would eliminate portions of Regulation E that require credit unions and other financial institutions that provide ATM services to display a physical notice on the ATM that a fee will be charged. Under the legislation, ATMs would only be required to display the ATM disclosures on a screen, and give ATM users the choice of opting in to such a fee.
CUNA has also asked the CFPB to address the ATM disclosure issue.
ATM disclosure requirements have caused issues for credit unions and other financial institutions. CUNA has noted that outside notices on ATMs are, in some cases, being intentionally removed or destroyed, without the financial institution's knowledge, and that pictures are then taken of the ATM to show noncompliance. Some ATM users may then use this as evidence of apparent non-compliance and as grounds for lawsuits, and the number and cost of these lawsuits continues to climb.
CUNA recently estimated that the total number of these lawsuits could be in the hundreds, and many credit unions are settling the suits to avoid the cost of litigation.