WASHINGTON – Legislation that would help credit unions and other financial institutions by easing duplicative ATM regulations is on the House calendar for this week, and could receive a full House vote as early as today.
The bill (H.R. 4367) would eliminate portions of Reg E that require credit unions and other financial institutions that provide ATM services to display a physical notice on the ATM that a service fee will be charged. Under the legislation, ATMs would only be required to display on-screen disclosures, and give users the choice to opt-out of a transaction that would result in a fee.
These ATM disclosure requirements are creating issues for credit unions and other financial institutions that continue to be subject to frivolous lawsuits. ATMs are, in some cases, being intentionally removed or destroyed, without the financial institution's knowledge, and then pictures taken to show noncompliance with disclosure rules. Some ATM users have used this as grounds for lawsuits, and the number and cost of these lawsuits continues to climb.
CUNA President/CEO Bill Cheney said the bill is "a common-sense solution that will alleviate an unnecessary compliance burden and reduce instances of baseless litigation."
The House Financial Services Committee unanimously approved the bill before the July 4th holiday break, and committee members at that time said they hoped the bill could be moved on to the Senate quickly.
The bill has 145 co-sponsors. The Senate companion bill has 21 co-sponsors.