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#1540124 - 04/25/11 03:35 PM ATM Fee Notice
gadawg1 Offline
Gold Star
Joined: Sep 2006
Posts: 419
Georgia
Does Michigan state law require that the foreign ATM fee ($ amount) be disclosed on the ATM?

There was a recent article in USA Today that stated banks were being sued under Reg E for not disclosing the fee on the ATM as well as including it on the screen.

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#1552371 - 05/17/11 04:53 PM Re: ATM Fee Notice gadawg1
SmallTownGirl Offline
Member
Joined: Jan 2006
Posts: 76
Has nothing to do with state law. This is from the latest Michigan Bankers Association Advocacy Report/Grassroots News:

ATM Lawsuits Hitting Michigan Banks – Check your ATMs for Compliance Today
Last July, we encouraged banks to inspect all ATMs for the required machine disclosure. In addition, it is recommended that a photo with date stamp be taken of every ATM to offer proof of compliance, if necessary.

Another rash of lawsuits, including class action lawsuits, has been filed against banks across the nation dealing with ATM disclosures. Some of these lawsuits have hit Michigan banks. It has been reported once again that people have been shopping ATMs for machines on which the notice is missing. Maybe it wore off or fell off. Maybe it was scraped off or maybe it was never there in the first place. These shoppers then perform a transaction, pay the fee and take a photo of the machine without the required notice. Then they file a lawsuit seeking damages for violation of the EFTA and Reg E.

The Electronic Funds Transfer Act and the FED’s implementing Regulation E require two separate disclosures at an ATM site should the ATM owner charge a fee.

One disclosure is the “screen or paper notice.” This is the notice that pops up on the screen or appears on a slip of paper to alert a user that a charge will be assessed allowing the user to cancel the transaction and avoid the fee. This disclosure is not problematic and banks easily comply with the regulation.

The other notice – the “on the machine notice” – has become a problem for some banks. Reg E requires ATM owners to post the fee notice in a prominent and conspicuous location on or at the ATM.

Warning to bankers – make sure your ATM machines are monitored regularly to ensure compliance with Reg E and to avoid becoming a defendant in one of these lawsuits

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