ATM Fee Disclosure Act of 1996

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``ATM Fee Disclosure Act of 1996''.

SEC. 2. ELECTRONIC FUND TRANSFER FEES.

    (a) Disclosures Required.--The Electronic Fund Transfer Act (15 
U.S.C. 1693 et seq.) is amended--
            (1) by redesignating sections 918, 919, 920, and 921 as 
        sections 919, 920, 921, and 922, respectively; and
            (2) by inserting after section 917 the following new 
        section:

``SEC. 918. FEES.

    ``(a) Disclosure of Point-of-Sale and Cash Withdrawal Fees.--In the 
case of any electronic fund transfer which is initiated by a consumer 
through the use of an electronic terminal, including a telephone 
operated by the consumer, no fee may be imposed by any person in 
connection with such transaction unless a notice is provided to the 
consumer, in accordance with subsection (b), which clearly states the 
following:
            ``(1) A fee will be imposed in connection with the 
        transaction.
            ``(2) The amount of any such fee.
            ``(3) The consumer may cancel the transaction without 
        paying the fee.
            ``(4) If the consumer does not elect to continue in the 
        manner necessary to effect the transaction after receiving this 
        notice, the transaction will be canceled without the imposition 
        of a fee by any person, including any person described in 
        subparagraph (B), (C), or (D) of subsection (d)(1) who would 
        have been involved in the transaction had the transaction been 
        completed.
    ``(b) Time and Location of Notice.--The notice required under 
subsection (a) shall appear on the screen of the electronic terminal or 
on a paper notice issued from the machine or, in the case of an 
electronic fund transfer by a telephonic instrument, as a voice message 
clearly audible to the consumer after the transaction is initiated and 
before the consumer is irrevocably committed to completing the 
transaction.
    ``(c) Prohibition on Fees Not Properly Disclosed or Explicitly 
Assumed by Consumer.--No fee may be imposed by any person in connection 
with any electronic fund transfer initiated by a consumer for which a 
notice is required under subsection (a), unless--
            ``(1) the consumer receives such notice in accordance with 
        subsection (b); and
            ``(2) the consumer elects to complete the transaction, or 
        otherwise responds in the manner necessary to effect the 
        transaction, after receiving such notice.
    ``(d) Scope of Notice and Prohibition.--
            ``(1) In general.--The requirement of notice of fees under 
        subsection (a) and the prohibition on the imposition of fees 
        under subsection (c) shall apply with respect to any fee which 
        is or would be imposed in connection with any electronic fund 
        transfer to which such subsections apply by--
                    ``(A) the person operating or owning the electronic 
                terminal or telephonic instrument at which the 
                transaction is initiated by the consumer (other than a 
                telephone operated by the consumer);
                    ``(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 electronic 
                fund transfer.
            ``(2) Transactions initiated by telephone.--In the case of 
        an electronic fund transfer initiated by a consumer through the 
        use of a telephone operated by the consumer, the electronic 
        terminal or telephonic instrument to which the consumer 
        connects through the use of such telephone shall be treated as 
        the electronic terminal or telephonic instrument at which the 
        electronic fund transfer is initiated for purposes of this 
        section.
    ``(e) Documentation.--Written documentation of the amount of any 
fee imposed by any person in connection with any electronic fund 
transfer for which notice is required under this subsection, and the 
identity of any such person, shall be provided directly to the consumer 
upon completion of such transfer.
    ``(f) Balance Inquiries.--For purposes of this section, 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.''.
    (b) Conforming Amendment.--Section 906(a) of the Electronic Fund 
Transfer Act (15 U.S.C. 1693d(a)) is amended--
            (1) by striking ``and'' at the end of paragraph (4);
            (2) by striking the period at the end of paragraph (5) and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(6) The amount and type of any fee imposed in connection 
        with the transfer, including any fee information required to be 
        disclosed pursuant to section 918(e).''.

Summary: ATM Fee Disclosure Act of 1996 - Amends the Electronic Fund Transfer Act to prohibit imposition of a fee upon an electronic fund transfer initiated by a consumer from an electronic terminal unless explicit disclosures are provided regarding the amount of any transaction fee and the consumer's option to cancel the transaction without paying the fee. Mandates written documentation upon completion of the transfer of such fee amount and the identity of the person imposing it. Includes within such electronic fund transfers, for purposes of this Act, a balance inquiry initiated by a consumer in the same manner as an electronic fund transfer regardless of whether the consumer initiates a transfer of funds in the course of the transaction.