The lobbying effort against the fee placard goes on — and seems to be having the intended affect.
According to a report by The Hill, a bill to abolish the fee placard requirement is making fast progress through the House, where it scheduled for June 27 mark-up by Financial Services Committee.
Lobbyists for the Credit Union National Association (CUNA) have told lawmakers that the law serves no useful purpose, while compliance costs credit unions a substantial sum.
“If a credit union is spending … $2,000 to comply with a regulatory requirement that doesn’t benefit the consumer, that comes as a cost to them. We can’t use that $2,000 to make a loan to them,” said Ryan Donovan, CUNA senior vice president of legislative affairs in The Hill report. “That’s money we can’t use for our members.”
And this doesn't including the costs of fighting frivolous fee placard lawsuits. James Ballentine, chief lobbyist for the American Bankers Association told The Hill that since 2002, ATM deployers had been obliged to answer more than 500 lawsuits filed in cases where placards had been removed or defaced.
For their part, consumer groups are campaigning to keep the fee placard requirement. They say it helps to let consumers know about the fees before they initiate an ATM transaction. “You should have the notice upfront before you even start the transaction,” Pamela Banks, senior policy counsel for Consumers Union, told The Hill.
For more on this topic, visit the regulatory issues research center.