Illinois credit unions will no longer be required to post fee disclosure stickers or signs on ATMs thanks to HB 2432 that was signed into law last week by Gov. Pat Quinn.
The state bill provides parity with federal requirements regarding ATM fee disclosure, according to the Illinois Credit Union League. Previously, the federal Electronic Fund Transfer Act mandated that ATMs have a sticker or sign and an on-screen notice to alert consumers about fees.
In December 2012, President Barack Obama signed federal legislation removing the requirement for the physical sign, keeping intact the requirement for electronic disclosure of fees and an opportunity for the cardholder to cancel the transaction before incurring any fees.
More importantly, this measure provides credit unions that deploy terminals with relief from the risk of frivolous and spurious litigation, without impairing a member's awareness of the fees assessed for using the ATM, said Stephen Olson, ICUL executive vice president & general counsel.
An impetus for the federal and state legislation was that ATM disclosure stickers were being removed by individuals who would then take pictures of the machines and file lawsuits against financial institutions alleging they were not in compliance with disclosure rules.
The federal law and the new Illinois law are expected to stop those lawsuits.
Quinn signed HB 2432 into law Aug. 16, and it became effective immediately.A similar law was signed in recent weeks by New York Gov. Andrew Cuomo.
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