WASHINGTON-CUNA called on the Consumer Financial Protection Bureau to use its new authority over the Electronic Funds Transfer Act to amend requirements that force two separate disclosures on fees to a single, on-screen disclosure.
The call comes as credit unions are being hit by a growing number of suits claiming violation of a provision of the EFTA, which includes both an on-screen disclosure and a physical disclosure on the outside of the machine explaining what non-customers may be surcharged to use an ATM.
While CUNA is lobbying Congress for a legislative fix to the growing problem, the trade group believes the new CFPB, which has assumed the Federal Reserve's authority over Reg E, also can act to require a single disclosure, according to Mary Dunn, vice president of regulatory affairs for CUNA.
CUNA made its request to the CFBP as part of a comment on amendments to Reg E that would make changes to the rules on financial remittances. The agency, said CUNA, "should revise current Reg E requirements to no longer mandate these duplicate notices."
Earlier this month CUNA and NAFCU joined a variety of other financial lobby groups, including the American Bankers Association, the Electronic Funds Transfer Association, Independent Community Bankers Association, National Association of Convenience Stores, American Gaming Association and ATM Industry Association, in asking Congress to pass legislation that would reduce the number of required ATM fee disclosures to one. The lobby groups said the requirement for a dual disclosure of fees, including a placard attached to the outside of an ATM, is no longer necessary because the disclosures are included on the screen at every ATM before a consumer may complete a transaction.
