This requirement has led to baseless and frivolous lawsuits that threaten to reduce the number of ATMs operated by community banks and other institutions, which would only harm consumers.
Washington, D.C. (PRWEB) December 21, 2012
The Independent Community Bankers of America (ICBA) today thanked Congress and President Obama for taking action to eliminate a burdensome and costly ATM fee-disclosure requirement that has led to baseless and frivolous lawsuits. Under H.R. 4367, which President Obama signed into law last evening, financial institutions would no longer have to attach a physical placard to ATMs stating that a fee may be charged—information that is already disclosed via an onscreen prompt.
“ICBA is pleased that policymakers acted to eliminate this duplicative and burdensome ATM disclosure requirement,” ICBA President and CEO Camden R. Fine said. “This requirement has led to baseless and frivolous lawsuits that threaten to reduce the number of ATMs operated by community banks and other institutions, which would only harm consumers.”
The disclosure requirement is redundant because a similar and more effective fee notice is provided on ATM video monitors and offers users a choice to either consent to the fee or cancel the transaction. The requirement also is costly to operators because if the placard notice is not attached, plaintiffs may recover the lesser of $500,000 or one percent of the net worth of the ATM operator. This bounty has led to instances of litigants removing the placard, photographing the ATM and filing a lawsuit before the ATM operator is aware of the missing sign.
ICBA has been a consistent, leading supporter of the legislation, which passed unanimously in the House and Senate. ICBA especially thanks House Financial Services Committee member Blaine Luetkemeyer (R-Mo.) and Senate Banking Committee Chairman Tim Johnson (D-S.D.) and the large number of supporters for their work on this important issue.
For more information, visit http://www.icba.org/advocacy.
The Independent Community Bankers of America®, the nation’s voice for more than 7,000 community banks of all sizes and charter types, is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education and high-quality products and services. For more information, visit http://www.icba.org.
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