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#12269 - 03/29/01 02:31 PM E-Sign and Reg Z
Bear Collector, CRCM Offline
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District of Columbia
At last weeks Maryland Banker's Compliance Conference, Richard Insley demonstrated how to offer disclosures on line through the E-Sign Act. We want to offer the ability to apply for Home Equity Lines of Credit on our Web site, but our technology is not advanced enough to present the e-sign opt-in the way Richard demonstrated. Does anyone know what the minimum acceptable alternative would be? If the customer can read the e-sign disclsoure, witch would be in the same format as the pre-application disclsoures, and affirmatively consents to recieve them electronically through the use of a "radio button" would this satisfy the requirements of Reg. Z and E-sign?
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#12270 - 03/29/01 04:37 PM Re: E-Sign and Reg Z
Richard Insley Offline
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#12271 - 06/06/01 02:03 PM Re: E-Sign and Reg Z
yomama Offline
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When a customer wants to sign up for internet banking, we have them sign a document that includes all disclosures and a clause stating that they agree to the electronic delivery of all disclosures. Isn't this good enough or does it also have to be online, before they actually receive them?

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#12272 - 06/06/01 02:42 PM Re: E-Sign and Reg Z
Bear Collector, CRCM Offline
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Peggy,
According to E-sign and the new E-regs, a customer must agree to receive electronic disclosures electronically. In other words, a paper agreement will no longer work. You can still sign people up for electronic banking in paper format, and give them their initial disclosures in paper format, but if you want to send future disclosures in electronic format, the customer must demonstrate that they can receive the disclosures that way. If you haven't already, you should read through the various e-regs. They appear to mandate use of a customer's e-mail address to deliver disclosures, or to inform the customer about where they can access the necessary disclosures on your internet site.
We have determined that we are currently unable to do disclosures electronically, because while we do have the ability to e-mail to customers, what we do not have is the ability to track, monitor and redisclose to those customers we have mailed electronic disclosures to previously. To build such a capability into our current system would cost our bank over $100,000.
Leslie
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#12273 - 06/06/01 02:54 PM Re: E-Sign and Reg Z
Andy_Z Offline
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Interesting. You have them use traditional pen and paper to consent.

You should look at the E-Sign Act itself, 101(c)(1)(C)(ii) (the customer) "consents electronically, or confirms his or her consent electronically, in a manner that reasonably demonstrates that the consumer can access information in the electronic form that will be used to provide the information that is the subject of the consent;"

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Andy Zavoina
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#12274 - 06/07/01 04:17 AM Re: E-Sign and Reg Z
yomama Offline
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We started the pen and paper authorization when we went on-line 2-3 years ago, before E-sign. We don't provide any disclosures electronically, just checking into requirements, risks, cost savings, etc. I obviously need to get up to speed on this or we won't be offering anything online but excuses!



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#12275 - 06/06/01 06:59 PM Re: E-Sign and Reg Z
Andy_Z Offline
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The link Richard has above will take you to the FTC site where you can download the E-Sign Act itself. I had to add an "l" onto the end to get there today, making the last of that URL, "html".

I don't believe LA has adopted UETA yet so E-Sign should be what you need to conform to.

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Andy Zavoina
Opinions stated are not necessarily that of my employer.

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AndyZ CRCM
My opinions are not necessarily my employers.
R+R-R=R+R
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

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#12276 - 06/06/01 06:59 PM Re: E-Sign and Reg Z
Andy_Z Offline
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Ignore this. The reply double posted.

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Andy Zavoina
Opinions stated are not necessarily that of my employer.

[This message has been edited by Andy Z (edited 06-06-2001).]

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AndyZ CRCM
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Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

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#12277 - 06/06/01 07:06 PM Re: E-Sign and Reg Z
Richard Insley Offline
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As Andy's quote indicates, it's sufficient to confirm consent electronically.
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