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For some, frivolous ATM fee notice lawsuits are still a threat
January 23, 2014 by Mark Smith — VP of Financial Solutions, Kahuna ATM Solutions
On Dec. 20, 2012, President Obama signed HR 4367 into law, eliminating the federal requirement that ATM operators post surcharge fee notifications not only on the ATM screen, but also physically on the terminal.
With the stroke of a pen, the federal requirement of dual ATM fee notification ended — along with frivolous lawsuits that plagued ATM operators when decals were removed or missing from the machine — right?
Not quite.
Elimination of the dual fee notification requirement as part of Regulation E was a huge victory for the ATM industry and FIs’ trade associations, but it wasn't the end of their work on behalf of members.
ATM signage laws were still not uniform across the nation; there were still a number of laws on the state level — specifically in Illinois, Massachusetts, Nebraska, New York, Vermont, Wyoming and the U.S. Virgin Islands — which required dual fee notification on ATM machines.
In February 2013, Nebraska withdrew its fee sticker law. In August both New York and Illinois followed suit, passing legislation that changed their laws to conform with federal standards and giving ATM operators some much-needed relief from frivolous lawsuits over missing fee stickers.
Today only Massachusetts, Vermont, Wyoming and the U.S. Virgin Islands still require physical ATM fee notifications.
What's being done to change state laws
According to David Tente, executive director of the ATM Industry Association U.S. chapter, changes to the law in Massachusetts are the highest priority because of their onerous nature.
"Not only are these unnecessary laws still on the books, but they are very specific as to the size of placard, the font used and the close proximity of the sign to the ATM screen," Tente said. "ATM operators are making honest efforts to comply with complex requirements for signage that serves no real purpose — and are still being pursued by attorneys looking to cash in on the ATM industry for the smallest infractions."
In Wyoming, legislation is considered only every other year and 2014 is an off year, according to Tente. ATMIA has been active in other efforts to change laws in Wyoming including changes to their ATM surcharging laws in 2012. However Tente said any assistance by ATM deployers or financial institutions operating in Wyoming would be appreciated.
The ATM numbers in Vermont and the Virgin Islands are small, putting them lower on ATMIA's priority list. But make no mistake, they are on the list.
As with Wyoming, ATMIA is looking for ATM deployers and financial institutions that operate in those states to help lead the charge in repealing unnecessary laws that put ATM operators at risk. ATM owners can contact Tente to lend their assistance.
Want more information on ATM signage requirements? See the graphic below by GetBranded.com and Kahuna ATM Solutions.
Read more about regulatory issues.
About Mark Smith
Included In This Story
ATM Industry Association (ATMIA)
The ATM Industry Association, founded in 1997, is a global non-profit trade association with over 10,500 members in 65 countries. The membership base covers the full range of this worldwide industry comprising over 2.2 million installed ATMs.
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