Founded in 1994, the Cincinnati-based ATM cash replenishment and maintenance firm once claimed to be among the largest independently owned armored car companies in the country. It operated 16 full-service vaulted facilities with more than 150 employees and reportedly serviced 2,000 ATMs in 12 states.

Approximately 50 credit unions from Tennessee, Kentucky and Mississippi joined a Zoom call Tuesday hosted by the Tennessee Credit Union League to assess the situation, exchange information and discuss potential next steps to restore ATM services.

Credit unions reported mixed impacts: Some ATMs remain operational, while others have gone offline. One credit union was told by an ATM Solutions contact that machines would function until they run out of cash.

However, many institutions said they could not access their machines, some of which remain locked and loaded with vendor-controlled cash.

ATM Solutions held the security keys and service codes, leaving credit unions unable to service their own equipment. The vendor reportedly possessed thousands of customer-programmable keys but only 50 are currently available, with no clear plan for distribution.

One credit union said it was not optimistic ATM Solutions would provide further support, claiming the company had declared bankruptcy.

However, a CU Times search of the Public Access to Court Electronic Records (PACER) system late Thursday afternoon showed no federal bankruptcy filings by ATM Solutions.

Nonetheless, that credit union said its contract permits removal and storage of the ATM pending bankruptcy proceedings. It also said ATM Solutions indicated a willingness to sell machines to replacement vendors to expedite new service arrangements. But another credit union cautioned that if ATM Solutions formally declares bankruptcy, equipment could be seized despite purchase agreements.

Joe Woods, director of sales at Dolphin Debit Access, a preferred provider of the Tennessee Credit Union League, told credit unions on the call that temporary ATM installation would cost between $3,000 and $4,500.

“I say that not to scare you, but from a budgetary perspective, we have to start weighing the cost,” Woods said. “It’s going to take 90 to 120 days for a new piece of equipment to be delivered. Is that $4,000 expense worth it for four months of activity before you get the new hardware in there?”

Credit unions were advised to communicate proactively with members, clarifying that the ATM outages are due to a third-party vendor’s collapse, not an internal failure. They were also encouraged to direct members to surcharge-free ATMs and reimburse fees incurred at other ATMs.

ATM Solutions Inc. did not respond to CU Times’ requests for comment by Thursday.

Peter Strozniak can be reached at [email protected].