In the midst of the larger battle over member business lending, the credit union industry did get some good news on Tuesday when the Senate approved a bill that will eliminate the requirement for physical fee disclosure on the exterior of ATMs.
The Senate passed H.R. 4367, which amends the Electronic Funds Transfer Act, to remove the requirement for the exterior fee disclosure, which had spurred dozens of frivolous lawsuits against credit unions and other ATM owners around the country. ATM operators will still be required to display an on-screen fee disclosure.
“This legislation is a good example of commonsense regulatory relief for credit unions,” MCUL & Affiliates CEO David Adams said. “We don't achieve all of our legislative and regulatory objectives in Washington due to very challenging political circumstances, but we did make a difference on this one. Hopefully it will bring an end to frivolous lawsuits and unnecessary protective measures related to this antiquated requirement that has now been eliminated due to our grassroots lobbying.”
Michigan lawmakers account for 10 of the total 145 cosponsors on the measure, a direct result of the effort and contacts made with each of them throughout the year by Michigan credit union officials and volunteers and the MCUL & Affiliates.
The ATM bill became necessary after the exterior notices on ATMs were, in some cases, intentionally removed or destroyed without the financial institution’s knowledge. Perpetrators would then take pictures of the machines and file lawsuits claiming regulatory violations.
The House approved the bill unanimously in July, and the passage in the Senate was also by unanimous consent.
Also on Tuesday, the Senate approved H.R. 4014, which would keep confidential the privileged information the CFPB receives from financial institutions. At least one Senate version of the ATM placard bill had been tied to this concept. Similar requirements are already in place for other financial institution regulators.