Regulation: USA's FDIC issues notice re ATM fee information
The Federal Deposit Insurance Corporation (FDIC) says that a number of banks may not be fully complying with Section 205.16 of Regulation E. It's not happy.
The regulation requires appropriate fee disclosures on or at automated teller machines (ATMs) and either on the screen of the machine or on a paper notice. The FDIC is reminding banks to ensure ATM fee disclosures fully comply with Regulation E.
But, although FDIC's authority extends only to banks, the Regulation covers all ATM operators, and so FDIC's comments have wider effect than their direct application.
FDIC has issued the following Financial Institution Newsletter.
FIL-66-2009
27 November, 2009
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Summary: |
The Federal Deposit Insurance Corporation (FDIC) is aware that a number of banks may not be fully complying with Section 205.16 of Regulation E. This regulation requires appropriate fee disclosures (1) on or at automated teller machines (ATMs), and (2) on either the screen of the machine or on a paper notice. The FDIC is reminding banks to ensure ATM fee disclosures fully comply with Regulation E. |
Highlights:
- The ATM fee disclosure requirements of Regulation E are set forth in Section 205.16, 12 C.F.R. 205.16, and took effect October 1, 2001.
- Section 205.16, requires an ATM operator that charges a fee to post a notice that a fee will be imposed for providing electronic fund transfer services or for a balance inquiry and disclose the amount of the fee.
- Notices must be posted both (1) in a prominent and conspicuous location on or at the automated teller machine, and (2) on the screen or on paper before the consumer is committed to paying a fee.
- An ATM operator may impose a fee on a consumer for initiating an electronic fund transfer or a balance inquiry only if the consumer is provided these notices and the consumer elects to continue the transaction or inquiry after receiving such notices.
- The FDIC notified FDIC-supervised banks of the amendments to these disclosure requirements in a Financial Institution Letter (FIL) dated March 23, 2001 (FIL-25-2001).
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