ALBANY, N.Y. (5/2/13)--Two of the Credit Union Association of New York's highest priority bills--both governing ATM fee disclosures--have advanced to the floors of the State Senate and the State Assembly, bringing them one step closer to passage, the association said Wednesday.
A. 6234 and S. 4363 would help protect New York's credit unions from frivolous lawsuits by eliminating the requirement of physical fee disclosures on ATMs, said CUANY. The bills would bring New York law into conformity with federal statutes.
"This advancement represents a major step in the right direction in our efforts to reduce the regulatory burden for New York credit unions," said William Mellin, CUANY president/CEO.
The bills' progress was made two weeks after CUANY's annual Governmental Affairs Conference and lobby day. CUANY had made passage of the bills a priority this year.
Under current law, ATM operators are required to display notices on both the ATM screen and on the outside of the machine. However, in recent years, numerous disclosure lawsuits in several states were filed against credit unions and banks, charging violation of the Electronic Funds Transfer Act because of missing signage. In many cases, vandals had peeled off disclosure stickers from the ATMs and then sued the financial institution for noncompliance.
A similar bill passed the Nebraska State Legislature in February. Nebraska, Illinois, Nevada, New York, Vermont and Wyoming were the only states having statutes that required dual disclosures. Nebraska was the first to amend its state law to conform with federal law (News Now Feb. 12).
On the federal level, Congress passed the ATM Bill, H.R. 4367, unanimously in December. It removes the duplicative ATM disclosure requirements, providing substantial regulatory relief for credit unions owning ATMs.
The federal law was the result of a Hike the Hill event, where a credit union CEO mentioned the issue to Credit Union National Association staff. Working together, CUNA, the leagues and credit unions drafted the federal legislation and advocated for its passage (News Now Dec. 12).