“ATM Nuisance Suits Should Be Thrown Out of Court” published in American BankerPrint PDF
Eric Magnuson, a partner in the firm’s Litigation Department, published “ATM Nuisance Suits Should Be Thrown Out of Court” in American Banker on April 4th. The article discusses the proliferation of federal lawsuits across the country claiming that banks and other ATM operators have violated the Electronic Fund Transfer Act (EFTA) by failing to post physical signage on or at ATMs notifying consumers of fees imposed for ATM transactions.
Modern ATMs provide onscreen notice and require the consumer to consent to the fee before completing a transaction, but that has not stopped plaintiffs from suing. Regulation E, the implementing regulation for EFTA, requires ATM operators to provide consumers with not one, but two forms of fee notice: both physical signage on or near the ATM and onscreen notice.
Most banks and ATM operators settle these cases, but as these suits proliferate, there is reason to reconsider settlement. Eric notes that there is a strong argument to be made that courts should dismiss these cases because plaintiffs lack constitutional standing.
To view the article, click here.