ATM Fee Reform Act of 1997

Summary: ATM Fee Reform Act of 1997 - Amends the Electronic Fund Transfer Act to mandate fee disclosures at the time of service by any host electronic terminal operator which imposes a fee for providing host transfer services to a consumer. 
Mandates disclosure at the time the consumer contracts for electronic fund transfer services that fees may be imposed for initiating electronic fund transfers from an electronic terminal which is not operated by the issuer of the consumer's access card.  Requires the Comptroller General to study the feasibility of requiring specified fee disclosures before the consumer is irrevocably committed to completing any electronic fund transfer by means of an electronic terminal.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``ATM Fee Reform Act of 1997''.

SEC. 2. ELECTRONIC FUND TRANSFER FEE DISCLOSURES AT ANY HOST ATM.

    Section 904 of the Electronic Fund Transfer Act (15 U.S.C. 1693b) 
is amended--
            (1) by striking ``(d) In the event'' and inserting ``(d) 
        Applicability to Service Providers Other Than Certain Financial 
        Institutions.--
            ``(1) In general.--In the event''; and
            (2) by adding at the end the following new paragraph:
            ``(2) Fee disclosures at electronic terminals.--
                    ``(A) In general.--The regulations prescribed under 
                paragraph (1) shall require any host electronic 
                terminal operator who imposes a fee on any consumer for 
                providing host transfer services to such consumer to 
                provide notice in accordance with subparagraph (B) to 
                the consumer (at the time the service is provided) of--
                            ``(i) the fact that a fee is imposed by 
                        such operator for providing the service; and
                            ``(ii) the amount of any such fee.
                    ``(B) Notice requirements.--The notice required 
                under subparagraph (A) with respect to any fee 
                described in such subparagraph shall--
                            ``(i) be posted in a prominent and 
                        conspicuous location on or at the electronic 
                        terminal at which the electronic fund transfer 
                        is initiated by the consumer; and
                            ``(ii) appear on the screen of the 
                        electronic terminal, or on a paper notice 
                        issued from the terminal, after the transaction 
                        is initiated and before the consumer is 
                        irrevocably committed to completing the 
                        transaction.
                    ``(C) Prohibition on fees not properly disclosed 
                and explicitly assumed by consumer.--No fee may be 
                imposed by any host electronic terminal operator in 
                connection with any electronic fund transfer initiated 
                by a consumer for which a notice is required under 
                subparagraph (A), unless--
                            ``(i) the consumer receives such notice in 
                        accordance with subparagraph (B); and
                            ``(ii) the consumer elects to continue in 
                        the manner necessary to effect the transaction 
                        after receiving such notice.
                    ``(D) Definitions.--For purposes of this paragraph, 
                the following definitions shall apply:
                            ``(i) Electronic fund transfer.--The term 
                        `electronic fund transfer' includes a 
                        transaction which involves a balance inquiry 
                        initiated by a consumer in the same manner as 
                        an electronic fund transfer, whether or not the 
                        consumer initiates a transfer of funds in the 
                        course of the transaction.
                            ``(ii) Host electronic terminal operator.--
                        The term `host electronic terminal operator' 
                        means any person who--
                                    ``(I) operates an electronic 
                                terminal at which consumers initiate 
                                electronic fund transfers; and
                                    ``(II) is not the financial 
                                institution which holds the account of 
                                any such consumer from which the 
                                transfer is made.
                            ``(iii) Host transfer services.--The term 
                        `host transfer services' means any electronic 
fund transfer made by a host electronic terminal operator in connection 
with a transaction initiated by a consumer at an electronic terminal 
operated by such operator.''.

SEC. 3. DISCLOSURE OF POSSIBLE FEES TO CONSUMERS WHEN ATM CARD IS 
              ISSUED.

    Section 905(a) of the Electronic Fund Transfer Act (12 U.S.C. 
1693c(a)) is amended--
            (1) by striking ``and'' at the end of paragraph (8);
            (2) by striking the period at the end of paragraph (9) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (9) the following new 
        paragraph:
            ``(10) a notice to the consumer that a fee may be imposed 
        by--
                    ``(A) a host electronic terminal operator (as 
                defined in section 904(d)(2)(D)(ii)) if the consumer 
                initiates a transfer from an electronic terminal which 
                is not operated by the person issuing the card or other 
                means of access; and
                    ``(B) any national, regional, or local network 
                utilized to effect the transaction.''.

SEC. 4. FEASIBILITY STUDY.

    (a) In General.--The Comptroller General of the United States shall 
conduct a study of the feasibility of requiring, in connection with any 
electronic fund transfer initiated by a consumer through the use of an 
electronic terminal--
            (1) a notice to be provided to the consumer before the 
        consumer is irrevocably committed to completing the 
        transaction, which clearly states the amount of any fee which 
        will be imposed upon the consummation of the transaction by--
                    (A) any host electronic terminal operator (as 
                defined in section 904(d)(2)(D)(ii) of the Electronic 
                Fund Transfer Act) involved in the transaction;
                    (B) the financial institution holding the account 
                of the consumer;
                    (C) any national, regional, or local network 
                utilized to effect the transaction; and
                    (D) any other party involved in the transfer; and
            (2) the consumer to elect to consummate the transaction 
        after receiving the notice described in paragraph (1).
    (b) Factors To Be Considered.--In conducting the study required 
under subsection (a) with regard to the notice requirement described in 
such subsection, the Comptroller General shall consider the following 
factors:
            (1) The availability of appropriate technology.
            (2) Implementation and operating costs.
            (3) The competitive impact any such notice requirement 
        would have on various sizes and types of institutions, if 
        implemented.
            (4) The period of time which would be reasonable for 
        implementing any such notice requirement.
            (5) The extent to which consumers would benefit from any 
        such notice requirement.
            (6) Any other factor the Comptroller General determines to 
        be appropriate in analyzing the feasibility of imposing any 
        such notice requirement.
    (c) Report to the Congress.--Before the end of the 6-month period 
beginning on the date of the enactment of this Act, the Comptroller 
General shall submit a report to the Congress containing--
            (1) the findings and conclusions of the Comptroller General 
        in connection with the study required under subsection (a); and
            (2) the recommendation of the Comptroller General with 
        regard to the question of whether a notice requirement 
        described in subsection (a) should be implemented and, if so, 
        how such requirement should be implemented.

SEC. 5. NO LIABILITY IF POSTED NOTICES ARE DAMAGED.

    Section 910 of the Electronic Fund Transfer Act (15 U.S.C. 1693h) 
is amended by adding at the end the following new subsection:
    ``(d) Exception for Damaged Notices.--If the notice required to be 
posted pursuant to section 904(d)(2)(B)(i) by a host electronic 
terminal operator has been posted by such operator in compliance with 
such section and the notice is subsequently removed, damaged, or 
altered by any person other than the operator of the automated teller 
machine, the operator shall have no liability under this section for 
failure to comply with section 904(d)(2)(B)(i).''.

SEC. 6. EFFECTIVE DATE.

    This Act and the amendments made by this Act to other provisions of 
law shall take effect at the end of the 6-month period beginning on the 
date of the enactment of this Act.