SIGHTLINE PAYMENTS|CASINO ATM ALERT| SURGE IN REGULATION E LAWSUITS

ATM Compliant Signage

ATM Compliant Signage

Sightline Payments LLC cautions casino operators 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, Sightline Payments recommends 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. For more information on these requirements please call Sightline Payments at 702-851-4747.

Upon recent visit by Sightline Payments staff to five prominent Las Vegas strip casino properties we 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 a class-action litigation “gotcha” that has the potential to turn the Federal Reserve’s 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. Confusingly, there was a period of time when the FDIC’s Compliance Examination Handbook suggested that providing one or the other form of disclosure, but not both, complied with the statute.

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.

Alerting the gaming industry on important issues like this is one more example of how Sightline Payments is on your side.

The Sightline Payments LLC Team- Kirk Sanford, Tom Sears, and Diran Kludjian

Copyright © 2010 Sightline Payments. All Rights Reserved

About the Author: Kirk Sanford, Sightline Payments CEO and principal founder, is a pioneer and leader in gaming payment and marketing solutions. Prior to this role, Mr. Sanford was the CEO and President of Global Cash Access for more than a decade and under his entrepreneurial leadership took GCA from a start-up company in 1994 to a more than $1Billion NYSE public company.  Mr. Sanford has also been involved with a number of other successful businesses including his role as Chief Executive Officer, President and Owner of Central Credit, a provider of gaming patron credit information services to casinos throughout the world. Mr. Sanford was featured by Business Week as one of the Top 100 CEO’s Under 40.

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