Obama Signs ATM Disclosure Bill

Obama Signs ATM Disclosure Bill

President Obama last week signed a bipartisan bill that eliminates ATM operators having to post notices of transaction fees on the ATM screen and also on or near the machine.

The bill overturns the provision in the Electronic Fund Transfer Act which had made it a requirement that some type of signage needed to be placed on screen as well as on or near an ATM machine to alert the consumer that they may be charged a fee for using the ATM. If the sign was not present, a consumer could bring action against the ATM operator and seek damages from $100 to $1,000.

This provision spurred countless lawsuits from consumers who found ATMs without this signage. Some cases involved people removing the signs and then suing the ATM operator.

The bill had unanimously passed the Senate on December 11 and passed the House without opposition on July 9th.

Many banking associations, including the American Bankers Association, the Credit Union National Association and the ATM Industry Association, were active in their opposition to the provision.