Sen. Michael Johanns (R-Neb.), ranking member of the Senate BankingSubcommittee on Security, International Trade and Finance,introduced a bill Thursday afternoon that would end the requirementto display a fee-notice placard on automated teller machines thathas spurred frivolous lawsuitsagainst credit unions.

The bill, with Sens. Mark Warner (D-Va.), Jon Tester (D-Mont.)and Bob Corker (R-Tenn.) as original cosponsors, is similar toHR 4367, introduced recently by Reps. Blaine Luetkemeyer(R-Mo.) and David Scott (D-Ga.).

NAFCU President and CEO Fred Becker called Johanns' action “animportant step toward repeal of the outdated dual signageprovision.”

Both HR 4367 and Johanns' new Senate bill would revise theElectronic Funds Transfer Act and its implementing rule, RegulationE, by eliminating the requirement of ATM operators to provide twoseparate notices to consumers regarding the imposition of a fee forthe use of the ATM.

If the legislation is enacted, ATM owners would only be requiredto provide notices of fees on screen at a point when consumers canstill opt to cancel their transactions.

“Eliminating this single requirement will help put a stop tofrivolous lawsuits that drive up the cost of maintaining ATMs and,in turn, lead to higher costs and less convenience for consumers,”Becker said.