Newsroom
NAFCU urges passage of H.R. 4367
June 26, 2012 – NAFCU wrote the House Financial Services Committee Monday to encourage swift passage of H.R. 4367, a bill scheduled for mark-up Wednesday that would repeal an outdated ATM regulation that has led to a spike in frivolous lawsuits facing credit unions.
H.R. 4367, introduced by Reps. Blaine Leutkemeyer, R-Mo., and David Scott, D-Ga., would repeal a provision contained in the Electronic Funds Transfer Act that requires both a physical placard and a notice on ATM screens that disclose ATM fees.
In a June 25 letter to the committee, NAFCU Executive Vice President of Government Affairs Dan Berger pointed out that the physical placard fee notice "may have played a useful role" when Congress enacted the statutory provision in the 1990s since ATMs were technologically incapable of providing that information on screen. But today, such signage is unnecessary since ATM users see what the fee is on the screen.
"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."
Currently, if a physical placard is not attached to the ATM, a class action lawsuit can be filed and a plaintiff is entitled to recover "the lesser of $500,000 or 1 percent centum of the net worth of the (ATM operator)," plus attorneys' fees and costs. "This statutorily prescribed bounty has created a strong incentive for spurious lawsuits," Berger noted.
Passing H.R. 4367 will put an end to these frivolous litigations, he wrote, and cause no harm to consumers. "Without relief, the number of baseless lawsuits will continue to rise, as will the cost of this service to consumers. Such actions could very well reduce the number of ATMs deployed and result in reduced consumer convenience."
Should the bill win passage by the committee, it would then head to the House floor for consideration
Share This
Related Resources
Add to Calendar 2024-06-26 14:00:00 2024-06-26 14:00:00 Gallagher Executive Compensation and Benefits Survey About the Webinar The webinar will share trends in executive pay increases, annual bonuses, and nonqualified benefit plans. Learn how to use the data charts as well as make this data actionable in order to improve your retention strategy. You’ll hear directly from the survey project manager on how to maximize the data points to gain a competitive edge in the market. Key findings on: Total compensation by asset size Nonqualified benefit plans Bonus targets and metrics Prerequisites Demographics Board expenses Watch On-Demand Web NAFCU digital@nafcu.org America/New_York public
Gallagher Executive Compensation and Benefits Survey
preferred partner
Gallagher
Webinar
Add to Calendar 2024-06-21 09:00:00 2024-06-21 09:00:00 The Evolving Role of the CISO in Credit Unions Listen On: Key Takeaways: [01:30] Being able to properly implement risk management decisions, especially in the cyber age we live in, is incredibly important so CISOs have a lot of challenges here. [02:27] Having a leader who can really communicate cyber risks and understand how ready that institution is to deal with cyber events is incredibly important. [05:36] We need to be talking about risk openly. We need to be documenting and really understanding what remediating risk looks like and how you do that strategically. [16:38] Governance, risk, compliance, and adherence to regulatory controls are all being looked at much more closely. You are also seeing other technology that is coming into the fold directly responsible for helping CISOs navigate those waters. [18:28] The reaction from the governing bodies is directly related to the needs of the position. They’re trying to help make sure that we are positioned in a way that gets us the most possibility of success, maturing our postures and protecting the institutions. Web NAFCU digital@nafcu.org America/New_York public
The Evolving Role of the CISO in Credit Unions
preferred partner
DefenseStorm
Podcast
AI in Action: Redefining Disaster Preparedness and Financial Security
Strategy
preferred partner
Allied Solutions
Blog Post
Add to Calendar 2024-06-21 09:00:00 2024-06-21 09:00:00 2024 Mid-Year Fraud Review Listen On: Key Takeaways: [01:16] Check fraud continues to be rampant across the country. Card fraud is affecting everyone. [04:31] Counterfeit US passport cards are just another new toolbox in the bad actors’ toolbox. [07:21] Blocking the fallback is the only way to defeat counterfeit cards. [11:17] The best way is constant education to your members in as many channels as you can. [13:02] We are still seeing overdraft lawsuits. Make sure the programming you have at your credit union matches what you have displayed for the members. Web NAFCU digital@nafcu.org America/New_York public
2024 Mid-Year Fraud Review
Strategy & Growth, Consumer Lending
preferred partner
Allied Solutions
Podcast
Get daily updates.
Subscribe to NAFCU today.