A.6234 [Robinson] / S.4363 [Griffo] - ATM Fee Disclosure Notices
In recent years, there has been a surge in the number of disclosure lawsuits filed against credit unions and community banks. In some cases, vandals have pealed back the physical disclosure and then sued the financial institutions for noncompliance. To protect themselves from lawsuits, credit unions have had to spend time and money documenting their compliance and fighting frivolous lawsuits.
Under current law, ATM operators are required to display notices in two separate locations notifying consumers that they might be charged fees for withdrawing cash from the ATM. One notice is required to be posted in a prominent and conspicuous location on or at the ATM with the second notice required to appear on the screen of the ATM or on a paper notice issued from the machine after the transaction is initiated and before the consumer is irrevocably committed to completing the transaction. The requirements of state law were patterned after the ATM disclosure requirements under federal law.
Congress recently adopted legislation (H.R. 3647) which eliminates the requirement that ATM fee notices be affixed to or displayed on ATMs. A.6234 would bring state law into conformity with current provisions of federal law relating to ATM fee disclosure requirements.