Reminder Issued On ATM Fee Disclosures
MADISON, Wis. – As Credit Union Journal has reported, ongoing lawsuits continue to be filed against financial institutions for failing to properly disclose ATM fees.
As a result, CUNA Mutual Group issued a statement urging credit unions to take simple, preventative steps to help avoid costly fines and legal fees.
The lawsuits, which began in 2009, allege violation of section 205.16 of Regulation E. This provision applies when a consumer initiates an electronic funds transfer or balance inquiry at an ATM owned or operated by an institution that does not hold the account to or from which the transfer is made, or about which an inquiry is made.
As of June 30, CUNA Mutual reported it had 44 open claims related to class action lawsuits alleging violations of Reg E. The suits span 14 states with litigation and loss exposure expected to exceed $3 million.
CUNA Mutual reminded that when credit unions charge a fee to a consumer using a non-credit union ATM network card or debit card, section 205.16 of the regulation requires:
* Posting a sign in a prominent and conspicuous location on or at every ATM owned or operated by the credit union stating that a fee will (or may) apply, and
* Disclosing the fee on the terminal screen or paper notice before the consumer is committed to paying the fee. It is not necessary to include the amount of the fee on the sign.
* Printing the amount of the fee on the receipt.