WASHINGTON – U.S. Sen. Michael Johanns, R-Neb., on May17 introduced a bipartisan bill that would end the requirement for dual fee disclosures at ATMs and require only the on-screen disclosure.
The bill is similar to one introduced in the House last month (see story). It comes as a growing number of consumers are taking advantage of the dual-disclosure requirement of the Electronic Funds Transfer Act and are suing credit unions and banks that fail to post a physical disclosure notice on the outside of their machines (see story).
Earlier this month, a federal judge in Detroit gave preliminary approval to a class-action lawsuit claiming AAC Community Credit Union failed to disclose the fees charged to nonmember users of its ATM (see story).
The National Association of Federal Credit Unions praised Johanns, the ranking member of the Senate Banking subcommittee on security, international trade and finance, for introducing the legislation.
“This legislation will eliminate a superfluous placard-notice requirement contained in the Electronic Funds Transfer Act,” said association President Fred Becker. “Eliminating this single requirement will help put a stop to frivolous lawsuits that drive up the cost of maintaining ATMs and, in turn, lead to higher costs and less convenience for consumers.”
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