House Unanimously Approves ATM Disclosures Bill (Misc News: July 10, 2012)
The U.S. House unanimously approved a bill aimed at stopping the frivolous lawsuits against ATM operators.
The bill, H.R. 4367, eliminates the Regulation E requirement of a physical notice of ATM fees on the exterior of the machine.
“As the number and the costs of these nuisance lawsuits rise, so does the likelihood that ATM operators will have to raise fees or reduce the number of ATMs in places where this vandalism has occurred,” said Financial Services Committee Chairman Spencer Bachus, R-Ala., according to CU Times. “Failing to stem the tide of these lawsuits threatens consumers’ convenient access to their money.”
The legislation would still require ATMs to maintain the on-screen notice about fees and provide consumers with the ability to decline those fees and terminate the transaction.
The bill passed with a vote of 371-0. It was introduced by Rep. Blaine Luetkemeyer, R-Mo., and cosponsored by Rep. David Scott, D-Ga., both of whom serve on the Financial Services Committee. Well more than 100 other Republican and Democratic cosponsors signed on before its approval by the House on Monday night.
Michigan has nine cosponsors in the House: Reps. Tim Walberg, R-Tipton; Bill Huizenga, R-Zeeland; Sander Levin, D-Royal Oak; Dale Kildee, D-Flint; Hansen Clarke, D-Detroit; John Dingell, D-Dearborn; Candice Miller, R-Harrison Twp.; Fred Upton, R-St. Joseph, and Gary Peters, D-Bloomfield Hills. In the upper chamber, Sen. Debbie Stabenow, D-Lansing, has signed on a cosponsor.
CUNA has said that the external disclosure requirement "has led unscrupulous individuals to remove the physical placard and sue the ATM operator for noncompliance, costing financial institutions hundreds of thousands of dollars."
“House passage of this legislation is an important milestone, but the work is not done,” CUNA President/CEO Bill Cheney said. “We urge the Senate to take up this measure as soon as possible and provide credit unions with much-needed regulatory relief.”
A Senate version of the bill, S. 3204, awaits action in that chamber.