Casino operators need to be alert to ATMs located on their casino floors to ensure signage on all their ATM terminals follows Regulation E and Network requirements. There is a recent surge of Regulation E lawsuits being filed against ATM terminals deployed across the country that are out of compliance. To help provide some protection to your casino business against these lawsuits it is recommended you check each ATM to ensure that they prominently display the required signage. The required signage includes Fee Notice, Operational Problems or Suspicious Activity and network brands. The Fee Notice directly relates to Regulation E.
Recent visit to five prominent Las Vegas strip casino properties found three of the five out of compliance. The American Bankers Association states “An ounce of prevention is worth several pounds of cure”. A quick look now could help insulate you later from class-action litigation that has the potential to turn the Regulation E into Regulation “Expensive.”
The “on machine” ATM notice requires a notice in a “prominent and conspicuous location” on the ATM that a fee may be imposed. It is this second set of disclosures that is generating litigation. The provisions of Regulation E governing ATM disclosures have been interpreted by the Federal Reserve as requiring both “on machine” and “screen/paper” notices.
Are these lawsuits legitimate concern? Most give the appearance of being filed mostly for their nuisance or settlement value. The EFTA caps class action damages at the lesser of $500,000 or 1% of the net worth of a defendant (plus attorney fees and costs). The statute also provides a defendant with excellent grounds to respond to the suit should they choose to defend rather than settle. The following web-site is yet another example of how claims are being solicited against your business http://www.classactionconnect.com
As a precautionary measure casino operators should take a date and time stamped photo of the ATM terminal displaying compliant signage as evidence of compliance at that point in time should the casino become involved in a class action lawsuit involving non-compliance to Regulation E. It is advisable to ensure signage is compliantly displayed each time a terminal is visited. Have your in house slot technicians carry signage to replace missing signage and a disposable time/date stamped camera to take the signage photo. It is suggested the time and date stamped photos be archived so a chronology can be provided as necessary. These simple steps should assist in the protection and defense of these lawsuits.