New Class Actions Targeting ATM Operators Alleging Failure To Comply With ATM Notice Requirements

Plaintiffs' attorneys have begun targeting "ATM operators"¹ with class actions related to ATM fee disclosures. Multiple class action claims alleging that ATM operators failed to comply with the ATM notice requirements under the Electronic Fund Transfer Act ("EFTA") were recently filed in multiple federal courts. These class action complaints seek not only damages for the plaintiffs, but also attorneys' fees and costs.

What Is the EFTA and What Does It Require of ATM Operators?

Background of the EFTA. According to the statute, Congress enacted the EFTA to protect individual consumer rights by "provid[ing] a basic framework establishing the rights, liabilities, and responsibilities of participants in electronic fund transfer systems." 15 U.S.C. § 1693(b). In order to be covered by the EFTA, electronic fund transfers must (1) involve a transfer of funds, (2) that is initiated by electronic means, and (3) debits or credits a consumer account. Bass v. Stolper,