April 18, 2012 – NAFCU is working in support of H.R. 4367, a bill introduced Tuesday by Reps. Blaine Luetkemeyer, R-Mo., and David Scott, D-Ga., to repeal an Electronic Funds Transfer Act provision requiring the use of placards in disclosing ATM fees.
The requirement has been the source of ongoing frustration and cost for credit unions and other financial institutions. Under current law, placards must be affixed to the front of ATMs to note if there is a possibility that a consumer will be assessed a fee for using the machine. But ATM owners are also required to allow consumers to cancel transactions after they read a message on screen to the same effect.
The placard requirement was originally required to address concerns about the early technology required to have on-screen fee disclosures. But the lack of a placard can open an ATM owner to huge fines and a citation for noncompliance.
NAFCU President and CEO Fred Becker welcomed the bill’s introduction and thanked Luetkemeyer and Scott for their leadership in taking on this issue. “Repealing this dual signage provision will help – not harm – consumers, by putting a stop to baseless lawsuits that will, ultimately, result in higher costs and less convenience due to increased fees and fewer ATMs.”