ATM Provider to Pay $50,000 to Settle Allegations of Failing to Post Proper Fee Notices
Atlas ATM Corporation 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 Monday in Suffolk Superior Court alleging that Atlas ATM Corporation (Atlas) failed to post fee-related disclosures, required by state regulations, which alert consumers about being charged for ATM transactions at certain machines.
“Companies should be held accountable for providing appropriate fee disclosures to consumers,” AG Coakley said. “Consumers will now be notified by this ATM provider before they use their debit and credit cards. We appreciate the cooperation of the Division of Banks in this joint investigation as we review ATM disclosure practices throughout the Commonwealth.”
“Consumers have the right to know the fees associated with their financial transactions before using an ATM,” said Commissioner of Banks David J. Cotney. “The Division continues to monitor ATM disclosures and appreciates the continued partnership with the Attorney General’s Office to help consumers make informed choices.”
Under the terms of the settlement, Atlas will pay $50,000 to the Commonwealth. Atlas has also agreed to revise its internal procedures to ensure that consumers receive all required disclosures prior to using an Atlas ATM. The company has further agreed to conduct periodic reviews of its machines to ensure ongoing compliance with the notice requirements.
The settlement with Atlas is the latest resolution in an industry-wide investigation into non-bank ATM disclosure practices. In May, AG Coakley and the Division of Banks settled similar allegations with Merrimak ATM Group.
Consumers should be aware that fees charged at ATMs may vary. State law entitles consumers to know what fees 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.
The joint investigation with the Division of Banks was handled by Assistant Attorney General Tiffany Bartz, Division Chief Glenn Kaplan and AGO staff Sabrina Maynard and Leslie Rogers, all of Attorney General Coakley’s Insurance and Financial Services Division.