A suit against Mutual First Federal Credit Union of Omaha over ATM fee disclosures was recently remanded to a federal court for further action.
Jarek Charvat filed suit against Mutual First, saying the credit union did not display a placard disclosing fees at its ATM as required under law. Mutual First maintains, however, that Charvat did not have standing to sue because he did not show how he had been harmed.
Charvat filed an appeal, and the U.S. Court of Appeals for the Eighth Circuit said he did not have to show harm to bring suit against the credit union.
At the time the suit was filed, the Electronic Funds Transfer Act required financial institutions to place placard and on-screen disclosures regarding fees. Violators could be forced to pay fines and legal costs. Congress has since passed legislation to remove the placard requirement, but the revision applies only prospectively.
The revision to the EFTA does not impact state laws on ATM fee disclosures. Some states have adopted the federal standard, while others adhere to their own rules on ATM fee disclosure.