ATM Fee Vigilantes Filing Reg E Lawsuits Against Credit Unions

Individuals across the country are filing lawsuits against credit unions and banks for failing to place surcharge notices on their ATMs.  Financial institutions in Michigan, California, and Illinois have been hit hard by the recent suits which claim that the terms of the Electronic Funds Transfer Act (EFTA, or Reg E)  are violated when the institution fails to post notice on or at the ATM that non-members will be assessed a surcharge.  More than 30 suits are pending in Michigan alone.

The language of EFTA requires an ATM customer be told up-front when a fee will be charged, how much the fee is, and the opportunity to cancel the transaction. Some of the lawsuits are class actions, which in theory could mean all of a credit union’s ATM customers may qualify for reimbursement.

http://www.ncua.gov/Resources/RegulatoryAlerts/Files/Prior2003/01-RA-06.pdf

http://www.fdic.gov/news/news/financial/2009/fil09066.html

http://www.cutimes.com/2011/01/13/big-spike-seen-in-atm-fee-disclosure-lawsuits

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