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CUNA calls on CFPB to revise ATM notice requirement

The Credit Union National Association has asked the Consumer Financial Protection Bureau to suspend a duplicate automated teller machine notice requirement because it has been the grounds for recent unfair lawsuits.

Under Regulation E, ATMs are required to display a notice that a fee may be charged for its services. ATM screens or paper disclosures must also provide detailed disclosures prior to the payment of the fee, according to CUTimes.com.

CUNA President Bill Cheney wrote the CFPB a letter claiming that many times ATM notices have been removed or destroyed without the institution’s knowledge.

Cheney wrote that pictures are then taken of the ATMs that have had their notices removed or destroyed and used for proof in lawsuits that the credit union is out of compliance.

If plaintiffs in the lawsuits win their argument, current rules allow them to be awarded damages as well as attorney fees, according to CUTimes.com.

Cheney wants the CFPB to revise Regulation E so that it no longer requires the duplicate notices on the ATM screen or paper as well as those attached to the outside of the ATM itself.

“We urge the agency to undertake a quick review of this and suspend the duplicative ATM notice requirement, which the agency is authorized to do under the EFT Act,” Cheney wrote, CUTimes.com reports. “If you feel that is not possible at this time, at the very least, the CFPB should announce it will work with us and others, including consumer groups, to seek legislation immediately that will put an end to these suits.”
 

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