WASHINGTON (7/10/12)--In anticipation of a House vote last night on a bill that would eliminate a dual-disclosure requirement on ATMs, the Credit Union National Association (CUNA) encouraged House lawmakers to approve the "common sense" bill.
In a letter to House leadership, CUNA noted the bi-partisan support enjoyed by the bill and reiterated the group's strong support for the legislation that it says eliminates an unnecessary regulatory burden on credit unions and other financial institutions.
The bill (H.R. 4367), which was unanimously approved in a House Financial Services Committee mark up on June 27, would eliminate portions of Regulation E that require financial institutions that provide ATM services to display a physical notice on an ATM that a fee will be charged. They are also required to display the fee disclosures on their screen.
Under the legislation, ATMs would only be required to display the ATM disclosures on their screens, and give ATM users the choice of opting in to such a fee.
In addition to being an unnecessary regulatory burden for credit unions, CUNA has argued the external ATM disclosure requirement is creating issues for credit unions and other financial institutions that continue to be subject to frivolous lawsuits.
The CUNA letter noted 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."
"The threat of lawsuits has caused many credit unions to go to extraordinary steps to document compliance, increasing the cost of operating ATMs to the detriment of credit unions' member-owners," wrote CUNA President/CEO Bill Cheney.
"H.R. 4367 is a common sense piece of legislation that will reduce regulatory burden without harming ATM users," Cheney concluded his letter. Use the resource link to access the CUNA letter.
(EDITOR'S NOTE: The House unanimously passed the bill last night, 371-0.)