House votes out ATM placard fee disclosure requirement

Blaine Luetkemeyer

The House Financial Services Committee approved legislation in a unanimous vote on Wednesday that would eliminate certain provisions of Regulation E that require financial institutions to post physical fee placards on ATMs.

Under H.R. 4367, financial institutions would only be required to display a fee disclosure on-screen. The disclosures have been the target of criticism, as opponents say the measure is redundant and could lead to abuses.

“Repealing this outdated and unnecessary duplicative requirement would cause no harm to consumers,” HFSC Chairman Spencer Bachus said. “They would still be notified on the ATM screen of any fees and still have the ability to decline those fees and terminate the transaction. However, failing to stem the tide of these baseless lawsuits could threaten consumers’ access to ATMs, especially in rural areas and locations that are prone to this vandalism.”

The bill, which has 127 co-sponsors, was introduced by Reps. Blaine Luetkemeyer (R-Mo.) and David Scott (D-Ga.). A similar measure, S. 3204, exists in the Senate and has 17 cosponsors.

“This bipartisan legislation will prevent nuisance lawsuits that are being pursued by unscrupulous people across the nation, and I am pleased that we are moving forward quickly,” Luetkemeyer said. “Everyone realizes this is a situation that has to be fixed, and I look forward to moving this bill through the House.”

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