On Tuesday, December 11 the United States Senate passed H.R. 4367, CUNA’s ATM Fee Disclosure legislation, by unanimous consent.
This bill eliminates the requirement under the Electronic Fund Transfer Act that ATMs carry a physical disclosure of potential fees on the outside of the machine. Senate passage of this legislation clears the way for the bill to be presented to the President and it is expected that he will sign this legislation.
The legislation cleared both the House and the Senate without a single no vote.
This is a significant victory for credit unions in our efforts to reduce regulatory burden. Credit unions can be particularly proud of this development because this bill was the direct result of a credit union CEO attending a hike the hill last year and raising this issue with CUNA staff.
CUNA and credit unions have noted that outside notices on ATMs were, in some cases, being intentionally removed or destroyed without the financial institution's knowledge. Perpetrators would then take pictures of the vandalized ATM, and allege the financial institution was not in compliance with disclosure rules.
The bill will revise Regulation E to only require ATM fee disclosures to be presented on an ATM's screen, easing the burdensome ATM fee disclosure regulations that have created legal and financial issues for many credit unions.
This Senate action will mean that credit unions will no longer have to send staff out to photograph their ATMs to demonstrate compliance with an outdated regulatory requirement, and they will no longer be sued because someone removed the physical placard.
It’s an important step forward and was only made possible by the combined effort of CUNA, the Leagues, and credit unions.