ATM Fee Signage Regulations

Background

Concern over the vulnerability for frivolous lawsuits related to the regulatory requirement for automated teller machine (ATM) fee signage placards to be posted on ATMs has generated federal legislative attention in recent months.  Currently, regulation requires placards to be posted on ATMs warning customers that they may incur a fee if they are not a member of the bank, even though it is also required that the customer agree to any fee on the ATM screen before proceeding with any transaction.  Efforts to review this regulation aim to prevent widespread litigation abuse stemming from the unintentional absence of the required signage.

Status (as of 1/25/13)

In June, the U.S. House of Representatives unanimously passed H.R. 4367 by a vote of 371-0, a piece of legislation that would repeal the regulation (ATM Reg E) requiring banks, credit unions, casinos and other financial institutions to post placards on automated teller machines

The Senate version of the bill, S. 3204, passed by unanimous consent on Dec. 11, 2012, and the legislation was signed into law by President Obama on Dec. 20, 2012.

AGA Position

The AGA was an active participant in the coalition advocating in favor of repealing the ATM Reg E requirement to post duplicative placards on ATMs and supported the legislation and eventual law.