WASHINGTON – The House of Representatives late yesterday approved the credit union-supported ATM disclosure bill (H.R. 4367) by a vote of 371-0. The legislation will eliminate a frustrating regulatory burden that requires ATMs to display a physical disclosure notifying consumers of the potential imposition of fees for use of the ATM. The malicious removal of these signs has been used in a growing number of nuisance lawsuits around the country.
In anticipation of the vote last night to eliminate the dual-disclosure requirement CUNA encouraged House lawmakers to approve the "common sense" bill.
In a letter to leadership, CUNA noted the bi-partisan support enjoyed by the bill and reiterated the group's strong support for the legislation that it says eliminates an unnecessary regulatory burden on credit unions and other financial institutions.
Under the legislation, ATMs would only be required to display the fee disclosures on screen, and give ATM users the choice of canceling the transaction before incurring any fee.
The CUNA letter noted the external disclosure requirement "has led unscrupulous individuals to remove the physical placard and sue the ATM operator for noncompliance, costing financial institutions hundreds of thousands of dollars."
"The threat of lawsuits has caused many credit unions to go to extraordinary steps to document compliance, increasing the cost of operating ATMs to the detriment of credit unions' member-owners," wrote CUNA President/CEO Bill Cheney.
Cheney’s full letter is available here.
“We are one step closer to eliminating a needless regulatory requirement that affects every credit union with an ATM,” Cheney said following the vote. “But there is more work to be done. In order for H.R. 4367 to become law, the Senate must also pass the bill. Tomorrow, I will send a letter to the Senate leadership urging them to bring this legislation to the floor as soon as possible,” he continued.
“We are hopeful that the bill can be considered soon, but the exact timing is not now clear, he concluded.
The Senate bill has 21 co-sponsors.