A House Financial Services Committee is scheduled Wednesday tomark up H.R. 4367, the bill that would repeal the ATM placardrequirement on fee disclosures under the Electronic Funds TransferAct, which has spurred frivolouslawsuits against credit unions.
|If cleared by the committee, the bill would proceed next to theHouse floor for action.
|In a letter Monday to panel Chairman Spencer Bachus (R-Ala.) andRanking Member Barney Frank (D-Mass.), Dan Berger, NAFCU executivevice president of government affairs, said the placard requirementmay have had its use when it was first implemented in the 1990s,but there is no need for it today.
|ATM users can review on screen any fee about to be assessed, andhave the opportunity to cancel their transactions, he said.
|Under current law, an ATM owner is open to possible class actionlawsuits if a placard has been removed or vandalized; damage awardscan go as high as $500,000 plus attorneys' fees and costs.
|“This statutorily prescribed bounty has created a strongincentive for spurious lawsuits,” Berger said.
|H.R. 4367, introduced by Reps. Blaine Luetkemeyer (R-Mo.) andDavid Scott (D-Ga.), has 127 cosponsors. A similar Senate measure,S. 3204, has 17 cosponsors.
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