CFPB Issues Ruling on Disclosure of ATM Fees
The Consumer Financial Protection Bureau has issued a new rule regarding the disclosure of ATM fees.
ATM operators will be required to provide consumers with either an on-screen disclosure or a printout of applicable fees for using an ATM machine. These disclosures must be given before the user is obligated to pay the fee.
Prior to December 2012, a provision in the Electronic Fund Transfer Act made it a requirement that some type of signage needed to be placed not only on the screen, but also 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, using the machine and then suing the ATM operator.
In December, President Obama signed a bill that eliminated the requirement to post these signs both on the ATM screen and on or near the machine.
The new rule by the CFPB now clarifies that an on-screen or paper notice of the fees must be given to the ATM consumer.