In an effort to push eStatements, at account opening we are going to automatically "opt-in" everyone by making eStatements the default to how the customer will receive their monthly statement.

I have read that many institutions are making eStatement the default? My concern is how do we handle the customers consent to receive eStatements?

You will need to check your state's e-sign law for details.

E-Sign is federal. UETA is state. But you can't set this as a default as not all your customers will have the capability.

From E-Sign:
formation.
(b) PRESERVATION OF RIGHTS AND OBLIGATIONS.—This title does
not—
(2) require any person to agree to use or accept electronic
records or electronic signatures, other than a governmental
agency with respect to a record other than a contract to which it is a party.

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I hope you'll join me in my webinar on e-compliance.

I agree with Andy. This is an illegal practice.

I know the answer above seems really clear, but I just want to make sure I understand correctly. So, if we have an account that we are selling as an "electronic" account - meaning no checks, etc. we cannot require estatements as a part of the agreement with this account? We still have to make it optional for the cusotmer? But, I'm thinking we can give them a choice - for example - $5 monthly fee for paper statement, no fee if electronic. Correct?

You're on the right track, FG. ESIGN prohibits cramdown. So long as a paper option is available for each type of product, you're free to create pricing incentives for customers to choose e-delivery. The facts presented above indicate that customers have no option for a paper statement--at any price.

Thank you so much for your help!

I thought you could require "e-statements" on a checking product designed as an e-checking product provided you also offered a regular checking account where the customer could receive a paper statement? There is no crame-down, the customer still has options to get the checking account his way?

Yes, that should work. I'd even be comfortable going another step and offering only the electronic product--so long as the depositor can choose to walk away from your offer. What you clearly can't do is to force existing account holders to accept electronic documents in place of the paper statements you have provided historically.