Mr. YOUNG of Alaska. Mr. Speaker, I rise to support H.R. 4367, a bill which would remove the current requirement under the Electronic Funds Transfer Act that ATM machines have a physical label indicating the fee charge. Currently, ATM machines have both a physical posted notification and an on-screen prompt that inform the customer of any fees prior to the withdrawal or transfer of money. These fees are often used to offset the cost of a patron withdrawing money from an ATM owned by another financial institution.
H.R. 4367 is an essential piece of legislation which prevents greed-motivated individuals from fraudulently removing the physical fee notification and then filing frivolous lawsuits on financial institutions for not having the physical notification posted. This fraud forces financial institutions to waste huge amounts of money on legal fees, some as much as $500,000, merely to defend frivolous lawsuits. Unfortunately, the cost of this litigation forces banks to raise their ATM fees to deal with the action of a few unscrupulous individuals exploiting a legal loophole.
Today, virtually all ATM machines display on-screen notifications of a transfer fee, prior to allowing the customer to withdraw money. Altering the law so that banks are only required to post an on-screen fee notification will help them avoid expensive, unjust, and unnecessary lawsuits. H.R. 4367 is an essential and necessary part of modernizing our financial regulations to fit the needs of the digital world. Please know that I firmly support H.R. 4367 and would have voted in favor of it.