WASHINGTON (2/28/12)--The Credit Union National Association (CUNA) in a comment letter has asked the Consumer Financial Protection Bureau to review and suspend the duplicative ATM notice requirements under Regulation E, and revise its Reg E requirements to no longer mandate duplicate ATM notices.
Reg E, which implements the Electronic Fund Transfers Act (EFTA), is one of many consumer related financial regulations the CFPB is taking authority over.
Under current ATM notice requirements, credit unions and other financial institutions must display at each ATM location that fees will or may be charged. More detailed ATM fee information must also be provided before the transaction is completed, either by showing it on the ATM's screen or providing the ATM user with a small printed disclosure before the consumer is committed to paying the fee.
Credit unions and others have found that the 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.
"We urge CFPB to use its authority to eliminate redundant ATM disclosures, which are of questionable utility to consumers and are subjecting credit unions to needless costs and potential lawsuits," CUNA Regulatory Counsel Dennis Tsang said in the CUNA comment letter.
CUNA has also called on Capitol Hill to address the ATM issue, cosigning a letter to Congress with the Electronic Funds Transfer Association (EFTA) and other groups. (See related Feb. 10 story: ATM disclosure changes needed, says CUNA joint letter)
For the full CUNA comment letter, use the resource link.