Key Provision of Regulation E Poised for Repeal: Manatt Instrumental in Legislative Efforts

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On December 11, 2012, after weeks of procedural holds, the U.S. Senate passed by unanimous consent a U.S. House bill (H.R. 4367) repealing the regulatory provision in Regulation E requiring banks, credit unions, casinos and other financial institutions to post placards on automated teller machines that disclose that the ATM operator may charge convenience fees.  The U.S. House of Representatives previously passed H.R. 4367 by a unanimous vote of 371 to 0 on July 9, 2012.  This bill now awaits President Obama's signature to become law. 

Through the efforts of D.C. heavyweights June DeHart and Elizabeth Mundinger, Manatt recruited and led a broad coalition of ATM operators, merchants, banks, and credit unions that successfully urged the U.S. Congress to pass this legislation eliminating a duplicative ATM fee disclosure requirement that has led to spurious and expensive lawsuits against ATM operators.  The legislation (i) eliminates a requirement that ATM operators disclose ATM fees on the physical ATM machine, yet retains a requirement that fees be disclosed on the ATM screen, and (ii) removes a critical avenue for the filing of frivolous consumer lawsuits.

Manatt's extensive relationships in the House of Representatives, Senate, and Consumer Financial Protection Bureau enable us to advocate for legislative changes, work to block problematic bills, and ask members of Congress to weigh in with respect to matters involving our clients.  Our deep industry knowledge together with effective advocacy stand at the ready to service our clients' most pressing needs.

 

Topics:  ATMs, Disclosure Requirements, Frivolous Lawsuits, Regulation E, Repeal

Published In: Administrative Agency Updates, Finance & Banking Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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