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March 25, 2013 – A final rule eliminating Regulation E's duplicative requirement to affix placards on ATMs to disclose possible fees will become effective upon publication in the Federal Register, the CFPB said last week.

The announcement comes three months after President Obama signed into law the NAFCU-backed H.R. 4367 to repeal the dual fee disclosure at ATMs. NAFCU was instrumental in garnering lawmakers' support for the legislation. The removal of the ATM requirement is aimed at stanching the rising tide of frivolous lawsuits alleging noncompliance by ATM owners when placards are stolen or defaced.

CFPB made the announcement via a blog post last week following approval of the final rule. NAFCU had been pressing the bureau to work expeditiously to implement the ATM measure and make clear that it preempts state law.

While the final rule fixes the federal requirement, state laws could still require the "on the machine" fee disclosure. Two states that have such laws are New York and Nevada. Legislation has been introduced in the state of New York that would overturn the requirement.

As the CFPB blog post noted, consumers will still be able to view information about possible ATM charges, including the amount of the charge, on the ATM screen or a printout. Consumers will still have the opportunity to cancel the ATM transaction without being charged.

NAFCU Director of Regulatory Compliance Steve Van Beek, reacting in Friday's Compliance Blog, applauded the CFPB for issuing the final rule and having it go into effect upon publication in the Federal Register.

• CFPB blog post, "Check the screen for ATM fees," 3/21
• March 22 NAFCU Compliance Blog
• Final rule amending Regulation E