June 27, 2012

Berger urges Senate action on ATM fix

June 28, 2012 – NAFCU Executive Vice President of Government Affairs Dan Berger turned attention to the Senate Banking Committee Wednesday in seeking forward action on a bill to repeal the ATM placard requirement on fee disclosure.

The House Financial Services Committee approved H.R. 4367 yesterday by voice vote; the bill awaits House action. Berger urged Senate Banking to move expeditiously on the similar S. 3204.

"NAFCU is hopeful that the Senate will also act swiftly on this issue," Berger wrote. "As evidenced by broad bipartisan support in the House Financial Services Committee, this is a common-sense fix that will provide relief to credit unions and their 94 million members that rely on basic financial services such as ATM access."

Over the last 18 months, the number and cost of lawsuits associated with the current placard disclosure requirement have risen precipitously. "If unchecked, these lawsuits will threaten the economic viability of ATM operators and may result in reduced consumer convenience," Berger urged.

ATM operators are open to possible class action that could cost them up to $500,000 plus attorneys' fees and costs when a placard is removed or vandalized. Both H.R. 4367 and S. 3204 would retain the requirement to disclose fees on screen, when they consumer can still cancel a transaction.