News

Illinois fee placard law gets the hook

August 26, 2013

Illinois legislators have become the latest state lawmakers to change their books to conform with federal legislation signed in December that ended the ATM fee disclosure sticker mandate — aka Reg E of the Electronic Fund Transfer Act.  

The law signed on Aug. 16 by Illinois Gov. Pat Quinn became effectively immediately, providing relief for ATM operators across the state from the threat of frivolous lawsuits over missing fee stickers, a report by Credit Union Times said. The new law also eliminated the costs incurred by FIs for maintaining extensive documentation and procedures to defend themselves in the event of such a suit. 

President Obama's signature on the federal legislation meant that on-screen fee disclosure with the option to cancel a transaction constituted sufficient fee disclosure. However several states also had their own statutes, meaning that operators could still be on the hook for missing stickers.

Nebraska withdrew its fee sticker law in February and New York Gov. Andrew Cuomo signed a bill eliminating the requirement for physical ATM fee notices in that state. Still, laws are not uniform across the nation. Massachusetts retains a fee sticker law on its books — and is actively investigating and litigating alleged violations of the statute.

Read more about regulatory issues.