Bipartisan legislation that eliminates a redundant fee disclosure requirement on automated teller machines (ATMs) was approved on Wednesday by the House Financial Services Committee.
The current law, which requires a sticker or sign about transaction fees to be attached to the ATM in addition to an on-screen notice, has spawned lawsuits by enterprising plaintiffs and vandals who remove the sticker or sign so they can then sue the ATM operator for being in violation of the law.
"Repealing this outdated and unnecessary duplicative requirement would cause no harm to consumers. They would still be notified on the ATM screen of any fees and still have the ability to decline those fees and terminate the transaction. However, failing to stem the tide of these baseless lawsuits could threaten consumers' access to ATMs, especially in rural areas and locations that are prone to this vandalism," said Chairman Spencer Bachus.
The bill, H.R. 4367, was introduced by Reps. Blaine Luetkemeyer and David Scott, who serve on the Financial Services Committee.
"This bipartisan legislation will prevent nuisance lawsuits that are being pursued by unscrupulous people across the nation and I am pleased that we are moving forward quickly," said Rep. Luetkemeyer. "Everyone realizes this is a situation that has to be fixed and I look forward to moving this bill through the House."