WASHINGTON (UPDATED: 10:45 A.M. ET, 6/27/12)--Legislation that would help credit unions and other financial institutions by easing duplicative ATM regulations was unanimously approved by a House Financial Services Committee voice vote today, and could see a full U.S. House vote soon after the July 4 recess.
The bill, H.R. 4367, would eliminate portions of Regulation E that require credit unions and other financial institutions that provide ATM services to display a physical notice on the ATM that a fee will be charged. Under the legislation, ATMs would only be required to display the ATM disclosures on a screen, and give ATM users the choice of opting in to such a fee.
These ATM disclosure requirements are creating issues for credit unions and other financial institutions that continue to be subject to frivolous lawsuits. The Credit Union National Association (CUNA) has noted that 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 noncompliance and as grounds for lawsuits, and the number and cost of these lawsuits continues to climb.
Committee members said they hoped the bill could be voted on by the House, and moved on to the Senate quickly.
CUNA President/CEO Bill Cheney said committee approval is "a big step toward rectifying a problematic case of regulatory redundancy," and CUNA will continue press Congress to enact this bill as quickly as possible.