- Posted April 25, 2011
- Tweet This | Share on Facebook
Retirees file lawsuits over ATM fees
DETROIT (AP) -- Two Michigan retirees have filed a wave of federal lawsuits challenging the ATM fees that banks charge to non-customers.
The lawsuits from Nancy Kinder and Ray Harrison of Fowlerville claim banks are failing to post notices outside ATMs alerting users about the possible fees as required by a 10-year-old federal law. Last week, they filed five in one day, the Detroit Free Press reported.
Court records show Kinder and Harrison travel the state by car, looking for ATMs that don't have a notification signs, and photograph the ATMs. They have sued 36 banks in two years. ATM fee lawsuits by others have been filed in other states as well, the newspaper said.
"This law is absolutely clear and has been on the books for 10 years," said attorney Geoffrey Bestor, who is representing the Fowlerville couple. "Nancy Kinder and Ray Harrison are a retired couple who feel strongly that banks ought to follow the law."
Doug Johnson, vice president of risk management policy for the American Banking Association, said the group views such lawsuits as "frivolous."
The Electronic Fund Transfer Act says banks must display the fee on the screen of the ATM and in a visible spot outside the ATM. In many cases, banks charge $2 to $3 for non-customers to withdraw money. In Michigan, more than 30 lawsuits over fees are pending in federal court.
Bestor said his clients get $1,000 or $2,000 per successful case. He said they have donated money from ATM suits to charity.
Ken Otsuka, a risk management analyst who tracks ATM litigation and advises credit unions on how to avoid liability, said those suing over ATM fees are taking things too far. He issued an alert to credit unions after seeing an increase in such lawsuits in recent months.
"There are some ATM-chasing lawyers out there that seem to be sitting out at ATMs that are not in compliance," said Otsuka, of CUNA Mutual Group. "It's easy money for them."
Published: Mon, Apr 25, 2011
headlines Oakland County
- Whitmer signs gun violence prevention legislation
- Department of Attorney General conducts statewide warrant sweep, arrests 9
- Adoptive families across Michigan recognized during Adoption Day and Month
- Reproductive Health Act signed into law
- Case study: Documentary highlights history of courts in the Eastern District
headlines National
- Judge is accused of using racial slur, vulgar terms and ‘libtard’ label for employee offended by his comments
- ACLU and BigLaw firm use ‘Orange is the New Black’ in hashtag effort to promote NY jail reform
- Colorado Supreme Court considers whether habeas petition can free zoo elephants
- 4th Circuit upholds $1M sanction for law firm that tried to ‘sabotage’ federal court’s authority
- Don’t give money to law schools unless they teach originalism, conservative federal appeals judge says
- Average BigLaw partner compensation increased 26% in 2 years, reaching this high-water mark