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.