WASHINGTON - The Federal Reserve Board has published proposed amendments to Regulation E and the regulation's official staff commentary, which clarify the ATM-fee disclosure obligations of ATM operators. The commentary interprets the requirements of Regulation E to facilitate compliance, primarily by financial institutions that offer EFT services to consumers.
According to a news release, comments are due on or before Oct. 7.
According to the regulation, an ATM operator that charges a fee for initiating an electronic fund transfer or balance inquiry must post notices at ATMs that a fee will be imposed. The proposed revisions clarify that ATM operators can satisfy the requirement by providing a notice stating that a fee "may" be imposed, if there are some services provided at the ATM that consumers would not be charged for.
ATM operators must continue to provide the consumer with a separate notice - either on the screen of the ATM or on paper - that states a fee will be imposed and the amount of the fee before a consumer is committed to paying a fee.
The board is considering other issues addressed in its proposed September 2004 update to Regulation E.
For more information, visit the Fed's Web site.
