Early Monday evening the U.S. House, by a vote of 371-0, overwhelmingly passed
H.R. 4367, the ATM Disclosure bill. The vote came two hours after the bill was discussed and basically passed a voice vote. House Financial Services Committee Chairman Spencer Bachus (R-AL) spoke in favor of the bill on the floor and said the Senate is waiting for this bill to pass so it could move it along. More details will be available following the recorded vote Monday evening.
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. CUNA 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.