WASHINGTON (7/11/12)--While the U.S. House's unanimous passage of legislation that would ease duplicative ATM regulations is "an important milestone," Credit Union National Association (CUNA) President/CEO Bill Cheney said there is more work to be done.
The ATM bill, H.R. 4367, passed the House Monday night by a 371 to 0 vote. Cheney encouraged the Senate to take up the ATM regulation measure as soon as possible and provide credit unions with much needed regulatory relief.
The bill would eliminate portions of Regulation E that require credit unions and other financial institutions that provide ATM services to display a physical notice on the ATM that a fee will be charged. Under the legislation, ATMs would only be required to display the ATM disclosures on a screen.
The current ATM disclosure requirements are creating issues for credit unions and other financial institutions that continue to be subject to frivolous lawsuits. CUNA has noted that outside notices on ATMs are, in some cases, being intentionally removed or destroyed, without the financial institution's knowledge, and then pictures are then taken of the ATM to show noncompliance with disclosure rules. Some ATM users may then use this as evidence of apparent noncompliance and as grounds for lawsuits, and the total number of these lawsuits could be in the hundreds. Many credit unions are settling the suits to avoid the cost of litigation, CUNA has said.
After the House vote, Cheney said credit unions across the country appreciate the passage of H.R. 4367, and noted that consumers won't be adversely affected by the elimination of this redundant sign because the bill maintains the obligation that consumers opt-in to any ATM fees before a transaction is processed.
"CUNA is working with senators and their staff to move the ATM legislation through the Senate as quickly as possible, and we remain hopeful that the Senate will consider the bill soon," CUNA Senior Vice President of Legislative Affairs Ryan Donovan said.