MADISON, Wis.-Analysts say they believe most credit unions are prepared for new ADA compliance rules related to ATMs that take effect this week, and that CUs will not face a wave of lawsuits similar to those driven by non-compliance with ATM fee disclosure rules.
Effective March 15, part of the 2010 update to the 1990 Americans With Disabilities Act requires ATMs to be accessible for the blind and sight-impaired, including speech-enabled technology, headset jacks, and other items so visually impaired consumers can use the machines. One analyst last week had indicated that as many as half the 409,000 ATMs in the country will miss the deadline for compliance.
But CUNA Mutual believes most credit unions will be within the rule's good graces. Joni Lovingood, CUNA Mutual senior consultant-risk management, said that due to the great deal of attention applied to the March deadline and information disseminated early so credit unions could work the expenses into their budgets, not many will be out of compliance later this week.
"I think for the most part we got this worked out early, through Risk Alerts we sent out and other communications," said Lovingood. "According to what we have learned, most credit unions are taking this deadline very seriously and have been working with their ATM vendors to update or replace ATMs. Also, in speaking recently with a large credit union chapter, I asked the group how many would be in compliance March 15. All of them raised their hands and said they already were."
Beyond just assisting the sight-impaired, credit unions have good reasons to be in compliance. The new ADA rule comes on the heels of a proliferation of lawsuits against financial institutions alleging they are violating the Electronic Funds Transfer Act by not placing fee disclosure information on the ATM video screen as well as on a physical sign on the outside of ATMs. The suits have caused credit unions to pay tens of thousands of dollars in settlement costs over the past few months (see related story, page 1).
Lawsuits May Be In The Offing
Lovingood said she would not be shocked if individuals who have been targeting financial institutions not in compliance with the fee disclosure law go after those failing to comply with the ADA requirements. She added that CUNA Mutual stressed the rash of fee disclosure lawsuits during its communications to CUs last year about the ADA deadline. "I think that helped make credit unions pay even closer attention to this new deadline."
CUNA spokesperson Pat Keefe said the association does not keep track of how many credit unions are or are not in compliance with guidelines like the new ADA rule. "For our part we've been keeping member credit unions informed since the 2010 update to the 1990 Americans with Disabilities Act. We've been urging credit unions to work with their ATM vendors to ensure they are up to date."
NAFCU stated the association has been working with its members to keep them informed of the new requirements, and has assisted them with any issues and questions.
The ADA rule does apply to every ATM operated by a financial institution. The rule states that where ATMs are provided, at least one accessible machine must be provided at each location, and if a credit union provides both interior and exterior ATMs, they are considered separate locations. Therefore ATMs inside and outside of the credit union office need to comply with the new guidelines.
For info: www.cunamutual.com
