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BANKING BULLETIN NO. 21
May 27, 1998
AUTOMATED TELLER MACHINE DISCLOSURES
Attached is a copy of Title 8 Vermont Statutes Annotated § 510, Automated Teller Machine Disclosures, which was signed into law on April 16, 1998. Under this new law, all ATM owners, or other remote service unit owners (“Terminal Owners”), must provide certain disclosures at each terminal location subject to approval by the Commissioner relative to the form, content, timing and location.
Each Terminal Owner must conspicuously post a sign which can be clearly viewed by the cardholder using the terminal in as high a contrast or resolution as any other display or graphics on or near the Terminal. A title on the sign must notify the cardholder of an impending fee (e.g. FEE NOTICE). The contents of such sign, at a minimum, must include the following information:
1. Name, address and telephone number of the Terminal Owner;
2. The days, times and means by which a cardholder can contact the Terminal Owner for consumer assistance; and
3. The amount of the fees or charges which the Terminal Owner will assess to the consumer for use of the machine.
In addition, by means of a display on the screen of each terminal at a point in the transaction process that permits the cardholder to cancel the transaction prior to the completion (or by means of a sign placed on the terminal in a manner clearly visible to the cardholder if the terminal does not have a screen), the Terminal Owner must provide:
1. A clear explanation that a surcharge is being imposed in connection with the cardholder’s transaction by the Terminal Owner and not the issuer of the card, and that the surcharge is an additional fee that will be deducted from the cardholder’s account, in addition to any fee that may be imposed by the issuer of the card;
2. The amount of the surcharge that will be imposed in connection with the transaction; and
3. The method by which the cardholder may cancel the transaction to avoid imposition of the surcharge.
Therefore, each Terminal Owner is required to submit the following information to the Commissioner for her approval no later than June 16, 1998:
1. The location of all terminals owned by the Terminal Owner;
2. Samples of all signs to be used in compliance with Section 510;
3. A script of the on-screen disclosures to be used (or copy of the sign to be used if the terminal does not have a screen); and
4. Detailed description of where and how such disclosures shall be made to the cardholder. Failure to meet the deadline may lead to the imposition of sanctions. Terminal Owners are required to obtain the Commissioner’s approval regarding disclosures for each new terminal location established after June 16, 1998 by providing the information set out above. Approval must be obtained prior to operation.
A suggested format for reporting the location of ATMs and the disclosures utilized at each location is attached.
Requirements in this Bulletin may be amended from time to time.
VERMONT STATUTES ANNOTATED
TITLE 8 § 510. AUTOMATED TELLER MACHINE DISCLOSURES
(a) The owner of an automated teller machine or other remote service unit, including a cash dispensing machine, located or employed in this state shall disclose at the location of each such machine the identity, address and telephone number of the owner and the availability of consumer assistance. The owner shall also disclose to the consumer the amount of the fees or charges which the owner will assess to the consumer for the use of that machine. The commissioner shall approve the form, content, timing and location of such disclosures and any amendments thereto prior to use. The commissioner shall act on any submission made under this section within 30 days of receipt. If the commissioner determines that any disclosures do not provide adequate consumer protection, the commissioner may by order or by rule specify minimum disclosure standards, including the form, content, timing and location of such disclosures. The commissioner may impose on the owner of an automated teller machine or other remote service unit an administrative penalty of not more than
$1,000.00 for each day’s failure of the owner to apply to the commissioner for approval of disclosures required under this section, for each day’s failure of the owner to use disclosures approved by the commissioner or for each day’s continuing violation of an order of the commissioner relating to the disclosures required by this section.
(b) In addition to an automated teller machine or other remote service unit owned by a bank, savings and loan or credit union, the provisions of this section shall apply to any automated teller machine or other remote service unit not owned by a bank, savings and loan or credit union, except it shall not include a point-of-sale terminal owned or operated by a merchant who does not charge a fee for the use of the point-of-sale terminal. The activities of an automated teller machine or other remote service unit whose owner is not a bank, savings and loan or credit union shall be limited to cash dispensing or the offer or sale of nonbanking services and products.
AUTOMATED TELLER MACHINE NOTIFICATION & DISCLOSURE
TO: Vermont Department of Banking, Insurance, Securities & Health Care Administration Banking Division
89 Main Street, Drawer 20
Montpelier, VT 05620-3101
1. OWNER OF ATM/TERMINAL
Telephone No.: (___)_________ Extension:
2. CUSTOMER SERVICE CONTACT
Telephone No.: (___)_________ Extension:
Attach the following:
1. Sample of all signs to be used in compliance with 8 V.S.A. § 510
2. Script of the on-screen disclosure to be used (or copy of the sign to be used if the terminal does not have a screen)
4. LOCATION OF ATM/TERMINAL
Street Address: __________________________________________________
If more than one location is being reported that utilizes the same dislcosures provided in Item #3, attach a list of each location.