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Banking and Finance

ATM Fee Disclosures: Bureau Amends Regulation E Removing ATM Sticker Requirement

Readers will remember that, before December 2012, the Electronic Fund Transfer Act required ATM's to include fee notices on the machines themselves.  Congress eliminated that requirement after banks faced repeated nuisance litigation arising out of the physical removal of these notices.  In many cases, the notices were likely removed by the very people who filed suit.  With the signage requirement gone, the CFPB has amended Regulation E to reflect the change while reiterating that ATM customers still receive either an on-screen or paper fee disclosure.  The revised provision, at 12 C.F.R. 1005.16, requires: (1) that the ATM operator "provide a notice that a fee will be imposed for providing electronic fund transfer services or a balance inquiry that discloses the amount of the fee";  (2) that the notice either be shown "on the screen of the [ATM] or by providing it on paper, before the consumer is committed to paying a fee"; and (3) that the fee be imposed only if the "consumer elects to continue the transaction or inquiry after receiving such notice."

Read more articles about the Consumer Financial Protection Bureau at Dykema's CFPB Blog

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