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#1154850 - 03/31/09 07:34 PM Signing up customers for e-statements
Fallgirl Offline
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Fallgirl
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Wisconsin
We offer internet banking, bill pay, and e-statements. Personal bankers have been trained to sign people up for these products when they open their accounts. It has been my understanding that under eSign, customers should not be signing up for these services when they are in the lobby because it does not demonstrate their ability to consent to receiving these services, particularly e-statements. Am I wrong here?

Also, we are changing our current bill pay provider. Customers currently enrolled will not be able to use the current system once we implement the new system and they also will not be automatically converted. They will need to sign up for bill pay again. Do we need to send them notification? I'm thinking under Reg E we need to give them a 21 day notice. Is this correct?
Last edited by Fallgirl; 03/31/09 07:34 PM.
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eBanking / Technology
#1155369 - 04/01/09 02:30 PM Re: Signing up customers for e-statements Fallgirl
Confused in Compliance Offline
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My understanding of the esign requirements is that they have to accept electronically (I accept buttons, etc..) thereby showing that they have the means to receive electronic disclosures, documents, etc.... Simply signing an agreement in paper form doesn't demostrate the customers capability of receiving electronic communications.

Any electronic service that we offer through our online system (transfers, estatements, etc...) is all "agreed to" via an "I accept" button for Esign purposes.

Regarding the swith over in your bill pay system, I would say the more advance notice the better so that they don't experience an unecessary "down time" during their bill payments.

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#1156090 - 04/01/09 09:27 PM Re: Signing up customers for e-statements Confused in Compliance
Richard Insley Online
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Originally Posted By: Confused in Compliance
"agreed to" via an "I accept" button for Esign purposes.

This sounds inadequate. If I understand the opt-in process you described, there is no "test" included. The ESIGN magic doesn't happen until the customer can demonstrate that s/he has the necessary hardware & software and knows how to use it to open and read an e-document of the exact type you will use to satisfy "in writing" requirements. The ability to click a button does not demonstrate an ability to receive, open, and read electronic documents. "I agree/accept/etc." is a declaration, which is part of the opt-in process, but not a demonstration of capability.
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#1156198 - 04/02/09 02:44 AM Re: Signing up customers for e-statements Richard Insley
John Burnett Offline
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If the acceptance button is on the demo document and the demo document is of the same type (e.g., a PDF doc) as used for the disclosures/statements to be sent electronically, and the demo doc is accessible only through the steps required to receive the information required by ESIGN (consumer's right to get a paper copy, how to back out, what systems are required to get the documents, etc.), then the click may be acceptable as demonstrable consent under ESIGN.
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#1174696 - 05/01/09 08:37 PM Re: Signing up customers for e-statements John Burnett
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By clicking the I accept button for the agreements/disclosures; they are in effect demostating that they can access the material electronically (otherwise they wouldn't get that far in the process) and our disclosure or terms and conditions that they accept always have a section about how to back out and system requirements, paper copies in lieu, etc....

According to our examiners,this is acceptable for ESIGN purposes.

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#1174936 - 05/02/09 08:46 PM Re: Signing up customers for e-statements Confused in Compliance
Andy_Z Offline
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If what they did to get to that point is all they have to do to view the documents/disclosures you'll send in the future, then this may be enough. It also depends on your systems. As an example, if "I Accept" is the default, even if I couldn't see it on my screen for some reason, hitting the Enter button would sign me up. Hopefully that isn't the case.

It is important to remember too that meeting E-Sign requirements and having an enforceable contract are two different things. The contract will also focus on the intent of each party.
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#1199443 - 06/11/09 01:14 PM Re: Signing up customers for e-statements Andy_Z
ndbanker Offline
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We are in the initial phases of rolling out eStatements to our customers. We will be offering the product through our online banking system and do have a plan for demonstrable consent. My question is in regards to when the e-Sign consent must be presented to the customer. We have an overall e-sign consent when a customer first enrolls for the online banking system. The goal was to include language in the overall e-sign consent allowing for the receipt of electronic statements. However, within the online banking system, they can actually enroll for eStatements at anytime (might not be in conjunction with the initial enrollment to the online banking system). Would it suffice to have met the e-Sign consent requirements, other than demonstrable consent which would be done when they enroll in eStattements, at some time prior to enrolling in eStatements?

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#1199728 - 06/11/09 04:50 PM Re: Signing up customers for e-statements ndbanker
Richard Insley Online
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The answer ranges from "probably" to "no", depending on how much time passes from the time the hardware/software/paper copy disclosures are given and you actually get the customer's consent for e-delivery of specific documents. Since you're not likely to track and consider how stale the original disclosures have become, I'd plan to do it all at the time you get consent.

It's more of a "best practice" than a requirement, but I'd set up one page to:
- present all ESIGN-required pre-consent disclosures,
- solicit the customer's consent,
- provide an "I want e-delivery instead of paper" button or some other actionable mechanism that clearly describes what the customer is electing,
- trigger (the "action" performed by the button) the push or pull of a sample document (it doesn't hurt to put the ESIGN disclosures in the test document - no extra cost for additional electrons - test document will become part of your defense if customer later asserts non-delivery of subject documents), and
- provide a field into which the customer keys some piece of information that can only be obtained by opening and reading the test document.

When the customer keys in the secret piece of information and hits ENTER, you have an airtight system that should pass any review.
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#1199858 - 06/11/09 06:20 PM Re: Signing up customers for e-statements Richard Insley
Andy_Z Offline
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I agree with Richard. There is no definition of what a reasonable period of time is between consent and execution. A day or a week is a big difference than 6 months or a year. And what if there were changes in your system, was the person who is just now executing the agreement up to speed?

It is easier and less trouble in the long run to go through the steps again.
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