OMAHA, Neb. -- A federal court Friday dismissed an ATM suit against Mutual First FCU over the disclosure provisions of the Electronic Funds Transfer Act because the plaintiff in the suit was unable to show proof that he had used the credit union’s ATM.

The U.S. District Court for the District of Nebraska ruled that the plaintiff, Jarek Charvat, lacked standing to bring the suit because he could not show that he suffered damages from the credit union’s failure to post a notice on the outside of its ATM disclosing the fees to be charged non-members of the credit union to use the machine.

The federal court said it is not enough for the plaintiff to prove the missing disclosure violated provisions of the EFTA, but the plaintiff must allege an injury in fact that was caused by the absence of an exterior fee notice. “The provision for actual and statutory damages in the EFTA does not automatically mean that a litigant is entitled to damages when he has alleged no injury in fact,” wrote the court in a July 2 ruling directing the plaintiff to show cause why the suit should proceed. “Charvat has not alleged an injury in fact caused by Mutual First's violation of the notice requirements, and he lacks standing to bring this action.”

Friday’s order said the federal court “lacked subject matter” in this case because the plaintiff lacks standing, therefore, the suit is dismissed.

Charvat has filed four separate suits over the EFTA.



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