An increasing number of class action lawsuits are being filed against ATM operators, or businesses simply having ATMs on their premises which are operated by others, where ATMs are missing the legally required fee notice sign. The lawsuits are exposing ATM operators and businesses which have ATMs on their premises to legal suits for substantial potential damages and attorneys' fees.
Under the Federal Electronic Fund Transfer Act, a fee notice must be placed "on or at" the ATM advising any customer of any fee that may apply. This is in addition to the required on-screen fee notice. Where the notice signage is not present, the ATM operator and/or the business which allows an ATM to be present on its premises may be sued in a class action for statutory damages ranging from $100 to $1,000 per transaction for each transaction during the period that the notice was missing. Given the number of transactions at an ATM each day or over a period of months, this liability can be considerable.
There are procedures ATM operators and businesses having ATMs on their premises can implement as well as defenses they can raise in order to minimize their exposure and reduce potential damages. Buchanan Ingersoll & Rooney has experience in defending these types of lawsuits and in achieving positive results for our clients. Should you need such a defense arise, or if you would like to learn more, please do not hesitate to contact us.