BOSTON (Legal Newsline) - Massachusetts Attorney General Martha Coakley announced a settlement Monday with an ATM provider to resolve allegations that it failed to post disclosure notices on certain machines.
Merrimak ATM Group LLC provides ATMs to numerous restaurants, convenience stores and other retail business in Massachusetts. Merrimak allegedly failed to post certain required fee-related disclosures that warn consumers about being charged for particular ATM transactions at some 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," Coakley said. "We appreciate the cooperation of the Division of Banks in this joint investigation as we monitor ATM disclosure practices throughout the commonwealth."
Massachusetts Commissioner of Banks David Cotney said it was important that consumers be given the necessary disclosure to let them make informed decisions related to automatic banking transactions.
Under the terms of an assurance of discontinuance, Merrimak will pay $50,000 to the state, revise its internal procedures to make sure consumers receive required notices before using their debit and credit cards at Merrimak ATMs in the state and conduct periodic reviews of its machines to make sure it continues to comply with the notice requirements.
In Massachusetts, state law requires that consumers be told what fee they will be charged prior to using an ATM.
Mass. AG announces $50,000 settlement with ATM provider
