OMAHA, Neb. A federal appeals court on Friday overturned a lower court ruling and reinstated an ATM fee disclosure suit against Mutual First FCU, one of more than 100 suits that appeared resolved before last year’s bill eliminating one of the two fees disclosures.
The U.S. Court of Appeals for the Eighth Circuit ruled the suit by Jarek Charvat, claiming the credit union failed to disclose the $2 per-transaction fee for non-customers on the outside of the ATM, should not be dismissed, as the lower court did. The ruling also reinstates an identical ATM fee suit Charvat has against First National Bank of Wahoo.
The appellate ruling comes after dozens of banks and credit union agreed to settle ATM fee suits, prompting Congress to pass a bill eliminating the need for the on-machine disclosures, in lieu of on-screen disclosures.
Up until then, the Electronc Funds Transfer Act, known as Reg E, required that ATM owners post the fee schedule on the outside of a machine. But in recent years almost all ATMs have posted the required disclosures on-screen.
There are still more than a dozen fee disclosure suits pending against credit unions.
