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#1628989 - 11/16/11 02:45 PM e-statements and disclosures
Island Dreaming Offline
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We are in the process of setting up e-statements capabilities. Our IT department is asking if the error resolution notice, that is currently on the back of our statements, can be one or more clicks away on the website since it won't be on the back of the statement anymore? How are others handling this?

TIA
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#1629011 - 11/16/11 03:05 PM Re: e-statements and disclosures Island Dreaming
John Burnett Online
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Unless your customer specifically opts in to electronic delivery of that disclosure (it's not part of the statement even though it's been printed on the reverse as long as anyone can remember), you have to provide it in writing at least once a year (in the long format). That's one alternative, but it requires printing and mailing.

Another alternative is to include the Regulation E Error Resolution Notice and other regulatory notices (Reg CC holds and Substitute Check notices; Reg CC and UCC returned deposited check notices, changes in terms notices under Regs E, CC, DD and others), might be included in the list, too) or make a broad reference to all notices concerning the account required by federal or state regulations, when describing the information to be provided electronically, as required by the ESIGN Act.
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#1629078 - 11/16/11 03:59 PM Re: e-statements and disclosures John Burnett
Island Dreaming Offline
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They have included the notice in the updated internet banking agreement, as well as a broad reference statement, that must be accepted prior to enrolling in estatements. Going forward - to meet the annual requirements - should we push an electronic long-form out annually or could the notice be one or more 'clicks' away on the website with a statement notice (and instructions) to access and review it?

Thanks for your help on this - I do appreciate it!
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#1631769 - 11/23/11 12:31 PM Re: e-statements and disclosures Island Dreaming
Island Dreaming Offline
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Any thoughts?
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#1631783 - 11/23/11 01:37 PM Re: e-statements and disclosures Island Dreaming
Richard Insley Offline
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I don't see anything in this discussion about ESIGN disclosures and demonstrable consent. All Reg. E disclosures must be delivered "in writing." That means paper or e-delivery by a method you and your customer have enabled by following the ESIGN informed consent process. Boilerplate and other broad references won't cut it. See Section 205.4(a)(1) of Reg. E.
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#1631864 - 11/23/11 03:05 PM Re: e-statements and disclosures Richard Insley
Island Dreaming Offline
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Richard,
Sorry I wasn't clear on that - yes, we are planning on following E-Sign rules and obtaining demonstrable consent with the initial enrollment for e-statements. That agreement will include the 'broad reference' to applicable disclosures.
Any thoughts on where those notices and disclosures (current and future) should be located (one or more clicks away) or is it strictly up to us?

Thanks for your insight!
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#1631924 - 11/23/11 04:12 PM Re: e-statements and disclosures Island Dreaming
Richard Insley Offline
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Originally Posted By: Pjps
Any thoughts on where those notices and disclosures (current and future) should be located (one or more clicks away) or is it strictly up to us?

Reg. E says that required disclosures may be "provided to the consumer in electronic form, subject to compliance with the consumer consent and other applicable provisions of ESIGN". This would include disclosures in the body of an email message, documents attached to an email message, or any other method that is guaranteed to put the disclosures in front of the depositor in a timely manner. Whatever method you select must be described in your ESIGN pre-consent disclosures and your depositor must have demonstrated possession of the necessary hardware, software, and savvy to access, read, and retain a test document of the exact type you will use for "live" Reg. E disclosures. You are free to use more than one method to deliver the various Reg. E disclosures--initial, periodic, etc.
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#1631999 - 11/23/11 05:21 PM Re: e-statements and disclosures Richard Insley
Island Dreaming Offline
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Exactly the info we were looking for!

Thanks and Happy Thanksgiving.
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#1634109 - 12/01/11 03:21 PM Re: e-statements and disclosures Island Dreaming
Libby M. Offline
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May I add a little twist to this?

If a customer consents to receiving e-statements and electronic disclosures on a checking account but this customer also has or subsequently opens another type of account, say a loan or another checking account or savings account, is that original consent for the e-statements and electronic disclosures considered acceptance of receiving electronically all future notices and disclosures on all accounts the customer has or will have with the bank or is it necessary to obtain consent on an account by account basis?
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#1634363 - 12/01/11 07:34 PM Re: e-statements and disclosures Libby M.
Richard Insley Offline
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One of the pre-consent disclosures you should have given each e-statement customer was:
a clear and conspicuous statement...informing the consumer of whether the consent applies
(I) only to the particular transaction which gave rise to the obligation to provide the record, or
(II) to identified categories of records that may be provided or made available during the course of the parties’ relationship


The answer to your question, therefore, is that the consent applies to whatever you said in your previous ESIGN disclosure. If you only disclosed the account for which the e-statement applied, then you'll need to go back to the customer for additional consent. This time, make the language broad enough to cover everything you want to send electronically.
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#1671431 - 02/29/12 08:51 PM Re: e-statements and disclosures Richard Insley
Beth175 Offline
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We realized that we limited our agreement to the account being enrolled in estatments - if we wish to broaden the coverage of our agreement would we need to redisclose to existing estatement customers and obtain demonstrable consent again? I am hoping we could accomplish redisclosure via a link in the email stating their statement is ready for viewing or a pop-up on the internet banking site. Since we aren't changing the hardware or software requirements do we need to obtain consent again?

Thanks!

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#1671496 - 02/29/12 11:13 PM Re: e-statements and disclosures Island Dreaming
Richard Insley Offline
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Toano, VA
Technically, if you painted yourself into a corner with too narrow a description of the "categories of records", you need additional consent. The only way consent can be official is when it's given electronically & when the act of consenting demonstrates successful use of your e-delivery system.

In a case where you have consent for an account statement but not for a list of similar accounts, you might want to take the small risk of amending the consent without a demonstration--assuming there are no differences in ownership of the various accounts and the method of e-delivery is the same for all account statements.
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