ALBANY, N.Y. (3/22/13)--A Credit Union Association of New York-backed bill that would protect New York's credit unions from nuisance ATM disclosure lawsuits has been introduced in the State Assembly.
CUANY announced Thursday that "important legislation that CUANY has been fighting for has been introduced in the New York State Assembly by the chair of the Banks Committee, Assemblywoman Annette Robinson."
The bill (A.6234) addresses an issue that has created legal and financial issues for many credit unions--ATM fee disclosure regulations-- by eliminating the requirement for physical fee disclosures to be placed on ATMs.
Current state law requires ATM operators to display notices in two locations, both physically on the ATM and on the electronic notification on the screen, informing consumers they might be charged fees for withdrawing cash from the ATM.
In some cases, vandals have removed the physical disclosure and then sued the financial institutions for noncompliance. To protect themselves from lawsuits, credit unions have had to spend time and money documenting their compliance and fighting frivolous lawsuits, said CUANY.
Assemblywoman Robinson's bill would eliminate the requirement of physical fee disclosures on ATMs, which would bring New York State law into conformity with federal law signed by President Obama last December.
The Credit Union National Association strongly backed the federal law, with CUNA President/CEO Bill Cheney noting that the law represented a "substantial realization of regulatory relief that will have an impact on every credit union that owns an ATM" while having no adverse effect on consumers (News Now Dec. 12)
CUANY President/CEO William J. Mellin noted that CUANY has been advocating aggressively for state passage of this legislation.
"Our state's law on this issue needs to be modernized, and the introduction of this bill is a significant step in the right direction. We commend Assemblywoman Robinson for her leadership, and we will continue to advocate for advancement of the bill in both the Assembly and the Senate," Mellin said.
Last month a similar bill to eliminate the requirement for a physical disclosure on ATMs about fees passed the Nebraska State Legislature, 47-0. That will was supported by credit unions and the Nebraska Credit Union League (News Now Feb. 12).
Nebraska, New York, Illinois, Nevada, Vermont and Wyoming are the only states that require dual disclosures.