If we set up a new checking account type that disclosed that statements were electronic only and gave the customer instructions on signing up for e-Statements would we have any further obligation?For instance...if they never signed up for the e-statement and therefore never received a statement, what libility would we have?

Thanks!

It would be as though you never gave them a statement. You have to comply with ESIGN. You'll also have problems with
Reg E consumer liability, because you will have not "provided the statement". Do a search...there are many threads on this issue.

I see several really ugly "pattern and practice" types of violations with your current plan. Ahou's right, you need to do A LOT of research before you'll be ready to roll this out.

Reg E issues and liability would exist, change in terms issues would exist, and the cost you'd have to go back and do refunds and then issue statements just isn't worth it.

Requiring e-statements is fine. But follow the rules and provide other options, even if they're higher priced.

It may be safer to think of it as offering 100% electronic accounts at an attractive price. "Requiring e-statements" rings of cramming e-statements down the throats of existing account holders--which can't be done.

We're soon to be rolling out the ability to open accounts via the internet (It won't be a paperless process, as we're requiring a physical signature card as part of the process.)

We've got separate account types mapped out for such accounts, and the Truth-in-Savings for each account type stipulates that the account requires the use of Online Banking and e-Statements. Further, if they don't enroll in each service within x number of days after opening their account, their account type will be changed to a different type.

Any issues in doing it that way?

Thanks in advance,

BeetleGuy

I think that approach can work, and that is what I was alluding to when I said you could require it. This account requires it, if you don't want that, your account product reverts to this and it has a monthly fee of $X.

Provide the costs, provide other options.

It should work OK. As long as customers have the option to avoid e-delivery, there shouldn't be a problem. What you must refrain from doing is to change the rules on existing accounts w/o informed & demonstrable consent.

A much overdue thank you to each of you.

We are in the process of looking into E-statements. I want to make sure I am understanding things correctly... If we do implement e-statements, can we charge a fee to customers who choose to have their paper statements still snail mailed to them? If so, does anyone else do this - and how much do you charge?

Thank you for your help!

I think it would be more important to figure out what your direct competitors are doing rather than a Nationwide poll. What may be prevalent in one area may not fly at all in another. The computer literacy of your customers is another important consideration. If you start charging for paper statements and those charges are higher than the other two banks across the street - just start waiving at the backs of your customers as they start exiting the bank.

Good call - I completely agree! I was just curious whether or not we COULD charge a fee...

The fee is up to you. Do you want to recoup the cost of assembling and mailing the statement, or do you want it to offset your costs in part and sway the consumer to e-statements?

Also, for a national bank, look to 12 CFR §7.4002 National bank charges.
(b) Considerations. (1) All charges and fees should be arrived at by each bank on a competitive basis and not on the basis of any agreement, arrangement, undertaking, understanding, or discussion with other banks or their officers.

Shop your local competition, look at their fee schedules online or in brochures and decide what you want to achieve here.