December 22, 2011
The Credit Union National Association (CUNA) sent a letter to the Consumer Financial Protection Bureau (CFPB) this week, urging the new watchdog agency to put an end to ATM notice rules in order to curtail lawsuits brought against small financial institutions.
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The Electronic Fund Transfer Act mandates that credit unions and other financial institutions state on the surface of the ATM that charges might be applied, according to CUNA. The organization claims legal action is often brought against credit unions when these ATM notices are taken down, damaged or destroyed.
“Consumers do not benefit from the redundant notices, yet credit unions are being sued because the notices have been removed,” CUNA President/CEO Bill Cheney said in a letter to Acting CFPB Director Raj Date, according to CUNA’s website.
Credit unions and others claim FIs are often unaware when these outside notices on ATMs are purposely removed or destroyed. Pictures of the missing notice are then snapped to prove an FI’s delinquence in court.
“If the litigants were concerned about compliance, they should first bring the issue to the institution’s attention to correct it or to the attention of the regulator. That is not happening and ATM ‘chasers’ are going straight to court,” Cheney added.
He urged Date to expediate the review of these regulations and to “suspend the duplicative ATM notice requirement” or “announce it will work with CUNA, credit unions, consumer groups, and others to seek legislation immediately that will put an end to these suits.”
Click here to read more on CUNA’s proposed plan of action.
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