NEW YORK (7/11/12)--Prior to Monday night's passage by the U.S. House of a bill that would limit duplicative disclosure requirements about fees on ATMs, The New York Times' Bucks blog took note of efforts to pass the bill by credit unions and the Credit Union National Association (CUNA).
"Credit unions, banks and ATM operators are asking Congress to change a rule that requires them to display notices outside ATMs that warn noncustomers that they may incur fees using the ATM," the Times blog said in its lead paragraph in the article, entitled "Banks Seek Help Against ATM 'Vigilantes.'"
"The Credit Union National Association says at least 110 class-action lawsuits have been filed against credit unions over the last two years, at least 20 of which were filed in the first four months of this year," the Times blog reported.
"Banks and credit unions deem the lawsuits frivolous and have asked Congress to drop the requirement for external notices, leaving only the mandate for an on-screen device."
The bill would eliminate parts of Regulation E that require financial institutions with ATM services to display a physical notice on the ATM that a fee will be charged, and would require only a notice on screen. Some people travel around, remove physical notices, take photos of the machine without the notice and sue the institution as violating the Electronic Funds Transfer Act.
The House unanimously passed H.R. 4367 Monday night, 371-0. The measure now moves to the Senate. CUNA has urged the Senate to pass the bill. (See related story, "CUNA urges Senate to take up ATM bill," in News Now's Washington section).
To access the blog, use the link.