June 27, 2012 – The House Financial Services Committee voted this morning to report out H.R. 4367, a bill sought by NAFCU to repeal the ATM placard requirement on fee disclosures under the Electronic Funds Transfer Act. The bill awaits House action.
NAFCU urged approval of the bill in a letter Monday to the committee. Writing panel Chairman Spencer Bachus, R-Ala., and Ranking Member Barney Frank, D-Mass., NAFCU Executive Vice President of Government Affairs Dan Berger said the placard requirement may have had its use when it was first implemented in the 1990s. But he said there is no need for it today since ATM users also see any fee about to be assessed on-screen, when they can still cancel their transactions.
“If the customer does not affirmatively accept the fee, the transaction is cancelled and the customer is not charged,” Berger said. “Our members fully support this fee disclosure requirement.”
ATM owners are subject to class action and fines of up to $500,000 plus attorneys' fees and costs if the placards are removed or vandalized. "This statutorily prescribed bounty has created a strong incentive for spurious lawsuits,” Berger said.
As of Tuesday, H.R. 4367 has 130 cosponsors. A similar measure, S. 3204, has 18.
H.R. 4367, introduced by Reps. Blaine Luetkemeyer, R-Mo., and David Scott, D-Ga., had 130 cosponsors as of Tuesday. A similar Senate measure, S. 3204, has 18 cosponsors.