Sen. Michael Johanns (R-Neb.), ranking member of the Senate Banking Subcommittee on Security, International Trade and Finance, introduced a bill Thursday afternoon that would end the requirement to display a fee-notice placard on automated teller machines that has spurred frivolous lawsuits against credit unions.
The bill, with Sens. Mark Warner (D-Va.), Jon Tester (D-Mont.) and Bob Corker (R-Tenn.) as original cosponsors, is similar to HR 4367, introduced recently by Reps. Blaine Luetkemeyer (R-Mo.) and David Scott (D-Ga.).
NAFCU President and CEO Fred Becker called Johanns' action “an important step toward repeal of the outdated dual signage provision.”
Both HR 4367 and Johanns' new Senate bill would revise the Electronic Funds Transfer Act and its implementing rule, Regulation E, by eliminating the requirement of ATM operators to provide two separate notices to consumers regarding the imposition of a fee for the use of the ATM.
If the legislation is enacted, ATM owners would only be required to provide notices of fees on screen at a point when consumers can still opt to cancel their transactions.
“Eliminating this single requirement will help put a stop to frivolous lawsuits that drive up the cost of maintaining ATMs and, in turn, lead to higher costs and less convenience for consumers,” Becker said.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
