ATM Provider to Pay $50,000 to Settle Allegations of Failing to Post Proper Fee Notices
Merrimak ATM Group to Change Disclosure Practices Following Joint Investigation by AG Coakley’s Office and the Division of Banks
BOSTON – A company that provides ATMs to numerous convenience stores, restaurants and other retail businesses in Massachusetts has agreed to pay $50,000 to settle allegations that it failed to post fee disclosure notices on certain machines, Attorney General Martha Coakley announced today.
As a result of a joint investigation with the state’s Division of Banks, the AG’s Office filed an assurance of discontinuance today in Suffolk Superior Court alleging that Merrimak ATM Group, LLC (Merrimak) failed to post certain fee-related disclosures, required by state regulations, which alert consumers about being charged for ATM transactions at certain machines.
“ATM fees are often highest at convenience stores, parking garages and other establishments where consumers may be tempted to get cash quickly, so companies should be held accountable for providing the appropriate notifications,” AG Coakley said. “We appreciate the cooperation of the Division of Banks in this joint investigation as we monitor ATM disclosure practices throughout the Commonwealth.”
“It is important that consumers be given appropriate disclosure to allow them to make informed decisions regarding their automated banking transactions,” said Commissioner of Banks David J. Cotney. “The Division believes this joint effort with the Office of the Attorney General will greatly benefit consumers.”
Under the terms of the settlement, Merrimak will pay $50,000 to the Commonwealth. Merrimak has also agreed to revise its internal procedures to ensure that consumers receive notices required by law before they use their debit and credit cards at Merrimak ATMs in Massachusetts. The company has further agreed to conduct periodic reviews of its machines to ensure ongoing compliance with the notice requirements.
Consumers should be aware that fees charged at ATMs may vary. State law entitles consumers to know what fee will be charged before using an ATM. To report an ATM that does not display fee notices, please call the Attorney General’s Insurance & Financial Services Division at 1-888-830-6277 or the Division of Banks at 617-956-1500.
This investigation was handled by AGO staff Tiffany Bartz, Glenn Kaplan, Leslie Rogers, and Sabrina Maynard, all of Attorney General Coakley’s Insurance and Financial Services Division.