July 09, 2012

House passes ATM disclosure fix

July 10, 2012 – A NAFCU-supported bill, H.R. 4367, to repeal the ATM placard disclosure requirement was passed by the House Monday evening on avote of 371-0 and is headed to the Senate for further action.

"This legislation has broad bipartisan support," said NAFCU Vice President of Legislative Affairs Brad Thaler. "It is a common-sense measure that eliminates the incentive for frivolous lawsuits while preserving a disclosure mechanism to ensure consumers' interests."

Rep. Blaine Luetkemeyer, R-Mo., chief sponsor of H.R. 4367, cited NAFCU's support for the legislation during debate Monday on the House floor. The association is also urging swift action in the Senate.

The measure would amend the Electronic Funds Transfer Act to eliminate the outdated and unnecessary requirement to post placards on ATMs regarding fees. Another requirement – to disclose fees on screen at a point that the consumer can still cancel a transaction – would remain intact.

The placard requirement has been at the root of an increasing number of lawsuits targeting ATMs where placards have been taken or defaced. A missing placard can open an ATM owner to fines of up to $500,000 plus lawyers' fees and expenses.

NAFCU President Fred Becker called on credit unions to contact their lawmakers over the July 4 recess to urge action on this issue. A similar Senate bill, S. 3204, has been gaining support as well.