WASHINGTON (7/9/12)--Legislation that would help credit unions and other financial institutions by easing duplicative ATM regulations is on the U.S. House suspension calendar for this week, and could receive a full House vote as early as today.
The bill (H.R. 4367) 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 their screen, and give ATM users the choice of opting in to such a fee.
These ATM disclosure requirements are creating issues for credit unions and other financial institutions that continue to be subject to frivolous lawsuits. The Credit Union National Association (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 number and cost of these lawsuits continues to climb.
CUNA President/CEO Bill Cheney said the bill is "a common-sense solution that will alleviate an unnecessary compliance burden and reduce instances of baseless litigation."
The House Financial Services Committee unanimously approved the bill before the July 4 district work period, and committee members at that time said they hoped the bill could be moved on to the Senate quickly.
The bill has 145 House co-sponsors.