Legal Opportunism Stokes ATM Litigation: Print Preview
Law firms seeking relatively easy settlements have helped fuel the numbers of lawsuits against both credit unions and community banks over alleged failures to comply with ATM regulations.
One of the latest CUs to have been caught in the ATM litigation web is the 36,000-member LA Financial Credit Union, a federally chartered CU headquartered in Pasadena, Calif. Class action litigation that charged the CU's ATMs violated contract law wrapped up last week.
Keeney and CUNA Mutual recommended that credit unions review and inspect their ATMs regularly for compliance. To protect themselves from Regulation E violations, credit unions should post signs that indicate that users of the ATM that are not account holders will or may face fees for withdrawals and balance inquiries.
The rule does not require the credit union to post the exact amount of the fee on the sign, CUNA Mutual said, though it does require the user be notified of the exact fee amount before they commit to the transaction.