Legislation sponsored by House Financial Services Committee members Blaine Luetkemeyer (R-Mo.) and David Scott (D-Ga.), and cosponsored by six congressmen, including members Francisco “Quico" Canseco (R-TX) and Ted Poe (R-TX), would repeal the requirement that physical notice of ATM fees be posted in addition to on-screen notices.
The Electronic Funds Transfer Act (EFTA) created the requirement for duplicative notices on each ATM machine. If an ATM operator fails to have either of these notices on an ATM, EFTA permits individual and class actions. Recovery under a class action may not be more than the lesser of $500,000 or 1 percent of the operator’s net worth, plus attorney’s fees and costs.
Because a consumer can’t complete an ATM transaction without receiving the on-screen notice, IBAT has long contended that permitting monetary recovery for a missing physical notice is unfair to ATM operators. We encourage you to contact your member of Congress to ask them to end these frivolous lawsuits by supporting H.R. 4367.