FAIRFAX, Va.--()--The Electronic Funds Transfer Association has been honored by the ATM Industry Association for its successful work on legislation to end the ATM dual fee notification requirement.
“EFTA is grateful to ATMIA for recognizing our 18-month campaign to help modernize ATM fee disclosure requirements”
EFTA received ATMIA’s Outstanding Service Award 2012 at the group’s 2013 U.S. Conference in Scottsdale, Az.
The Electronic Funds Transfer Act had required ATM operators to notify a consumer of a possible fee via the ATM screen as well as a physical placard or sticker on the ATM terminal. Over the past several years, unscrupulous individuals began defacing or removing the physical fee notice stickers and getting plaintiff attorneys to file claims against ATM operators claiming EFT Act violations. More than 500 lawsuits were filed across the country demanding cash settlements or threatening class action lawsuits.
EFTA, working with ATMIA and a broad inter industry coalition, urged Congress that the EFT Act’s dual fee notification requirement had become a burdensome, duplicative and outdated regulation. EFTA argued consumers would not be harmed by the elimination of the need for a physical sticker since ATMs display the fee on the ATM screen prior to completing a transaction. ATM users have the option of continuing with their transaction and incurring the fee, or cancelling it.
Congress agreed and unanimously passed legislation (H.R. 4367) ending the requirement to have a physical fee notice posted on the ATM. President Obama signed H.R. 4367 into law on December 20, 2012.
“EFTA is grateful to ATMIA for recognizing our 18-month campaign to help modernize ATM fee disclosure requirements,” said Kurt Helwig, president and CEO of EFTA. “To work with Congress and other industry groups and achieve a true bi-partisan agreement that has eliminated hundreds of frivolous lawsuits will benefit everyone. As is usually the case, consumers ended up bearing the cost of settling these baseless claims.”
About the Electronic Funds Transfer Association
The Electronic Funds Transfer Association promotes the advancement of electronic payments and commerce through education and information. Its goal is to keep both members and the public up to date on the business implications of legislative and regulatory initiatives focused on electronic payments technology. It can be reached at www.efta.org.