I
104TH CONGRESS
2D SESSION
H. R. 3246
To amend the Electronic Fund Transfer Act to protect the consumer with
regard to fees imposed in connection with an electronic fund transfer
initiated by a consumer, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 15, 1996
Mr. SCHUMER (for himself, Mr. KENNEDY of Massachusetts, and Mrs.
MALONEY) introduced the following bill; which was referred to the Com-
mittee on Banking and Financial Services
A BILL
To amend the Electronic Fund Transfer Act to protect the
consumer with regard to fees imposed in connection with
an electronic fund transfer initiated by a consumer, and
for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
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, respec-
tively; 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 pro-
vided 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 per-
son, 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 au-
dible to the consumer after the transaction is initiated and
before the consumer is irrevocably committed to complet-
ing the transaction.
‘‘(c) PROHIBITION ON FEES NOT PROPERLY DIS-
CLOSED 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 ac-
cordance with subsection (b); and
‘‘(2) the consumer elects to complete the trans-
action, or otherwise responds in the manner nec-
essary 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