CUNAhas urged the Consumer Financial Protection Bureau to suspend aduplicate automated teller machine notice requirement that is beingused by some as the basis for lawsuits against credit unions andother financial institutions.

In the letter to the CFPB sent today, CUNA President/CEOBill Cheney said that legal challenges are arising because ATMnotices required under Regulation E have been removed, damaged ordestroyed without the institution's knowledge.

Under federal rules, Cheney wrote, ATMs are required to displaya notice that a fee may or will be charged. He added that the ATMscreen (or paper disclosure) is also required to provide detaileddisclosures prior to the payment of the fee.

However, Cheney said the outside notices on ATMs are, in somecases, intentionally removed, destroyed or damaged and thatpictures are then taken of the ATM to show noncompliance. Thepictures are then used by those bringing lawsuits as proof that thecredit union is out of compliance–even though the screen or paperdisclosure is still displayed.

Under current rules, plaintiffs may be awarded damages as wellas attorney fees if they prevail in the lawsuits, Cheney said.

To address the growing problem of lawsuits, Cheney urged ActingCFPB Director Raj Date to use the agency's power to revise Reg E tono longer mandate the duplicate notices on the ATM screen or paperand those attached to the outside of the ATM itself.

“We urge the agency to undertake a quick review of this andsuspend the duplicative ATM notice requirement, which the agency isauthorized to do under the EFT Act,” Cheney wrote. “If you feelthat is not possible at this time, at the very least, the CFPBshould announce it will work with us and others,including consumer groups, to seek legislation immediatelythat will put an end to these suits.”