Better make sure your ATMs have all of the right disclosures and signs. As crazy as it sounds, some people spend their day driving around looking for ATMs without the proper signage, withdrawing money when they find one and then suing the bank for the lack of disclosures.
The Electronic Funds Transfer Act – specifically §205.16(c) requires BOTH an “on the machine” AND a “screen or paper notice” if a consumer will incur a fee for a transaction at the ATM.
If you think I’m making this up, here’s an excerpt from an article in the Detroit Free Press on 4/22/11:
Nationwide, a cottage industry of plaintiffs firms have spawned a flurry of ATM fee lawsuits, which have popped up in California, Texas, Illinois and Michigan. The suits have triggered settlements ranging from tens of thousands of dollars to $2.5 million. ATM fees for non-customers are generally $2 or $3.
In Michigan, more than 30 such lawsuits are pending in the state’s two federal courts, including one that Independent Bank settled Wednesday for $350,000. That lawsuit involved more than 40 ATMs across the state, including machines in Troy, Bloomfield Hills and Beverly Hills. Each member of a class action who qualifies is entitled to up to $1,000.
This would be a good time to drive by your ATMs and ensure they are up to speed. I sure hope no one rips the signs down later.
David’s banking career began as a field examiner for the FDIC in 1990. He later became a Compliance Officer and Loan Officer for a small bank. In 1993, he established Banker’s Compliance Consulting. Along with his amazingly talented Team, he has written numerous compliance articles for prestigious banking publications and has developed compliance seminars that Banker’s Compliance Consulting produces.
He is an expert in compliance regulations. He is also a motivational speaker and innovative educator. His quick wit and sense of humor transforms the usually tiring topic of compliance into an enjoyable educational experience. David is on the faculty of the American Bankers Association National Compliance Schools and has served on the faculty of the Center for Financial Training for many years. He also is a frequent speaker at the ABA’s Regulatory Compliance Conference. He is also a trainer for hundreds of webinars, is a Certified Regulatory Compliance Manager (CRCM) and has been a BankersOnline Guru for many years. The American Bankers Association honored David with their Distinguished Service Award in 2016.
David and his wife Karen have three adult children, four grandchildren (none of whom live at home!) and two cats (of which Dave is allergic … the cats, not the children!). They recently moved to an acreage outside of Lincoln, Nebraska where he gets to play with his tractor. When possible David can be found fishing, making sawdust in his shop, or playing the guitar and piano. He also enjoys leading worship at his church.