The Bureau of Consumer Financial Protection Makes It Easier For Banks To Notify ATM Users Of Their Fees

The Bureau of Consumer Financial Protection, which now has rule making authority for the Electronic Funds Transfer Act (EFTA) and its implementing Regulation E, a recently issued a final rule eliminating the requirement that a fee notice be posted “on or at” an ATM. Operators of ATMs need only provide an on-screen or paper disclosure which includes the amount of the fee to be charged. Of course, this disclosure must be made before a consumer is committed to the transaction.  This rule will reduce the number of expensive and time consuming class action suits which were filed when the posted notice was illegible, had fallen off, or was otherwise non-existent.

In the past, the Electronic Funds Transfer Act (“EFTA”) and its implementing Regulation E required that consumers using an Automated Teller Machine (“ATM”) be given two separate notices which described all fees for the transaction. These fees are usually imposed when a consumer uses an ATM not operated or owned by their financial institution. One notice had to appear on the ATM screen itself or on a paper notice issued by the ATM, given before the consumer became committed to the transaction, while the other had to be posted in a prominent place “on or at” the ATM.