If you are using the "pull" method for electronic statements and customers log on to internet banking to retreive a PDF file (not encrypted, because they have had to log on), what "test drive" method is used? Do you just e-mail them a PDF file and ask them to respond by giving specific information about something contained in the PDF file?

That is an excellent start, but make them retrieve the test file. This verifies that their browser is appropriate and encryption settings are suitable and that they can get to your site for the file. You are testing more than their ability to read the PDF file.

Thanks Andy! I was afraid that was what the answer would be. We are changing delivery methods and I just couldn't get my brain to jump from push to pull.

I just had a discussion with the FDIC in Washington D.C. about the "Test" required by Public Law 106-229 114 STAT. 465 Title 1 Electroinic Records and Signatures in Commerce. The FDIC indicated that they were not requiring the "test". We just needed to make sure we listed the equipment requirements, gave out the disclosures and the customer requested to receive the e-statements. I have talked to a half dozen banks that are doing e-statements and only one does the "test". What is your opinion on this??

The "test", demonstrable consent, is critical. They should be checking it but even if they are not, what will you do when a customer claims debits have been coming from their account for the last 9 months and they were not aware, because they couldn't read the statements you were sending them. Regardless of what examiners examine for, there is the legal requirement for this.

Thanks for that answer as I agree with you. I will use this to persuade my boss that it is indeed necessary for the reason you mentioned.

I couldn't agree with Andy more. ESIGN requires consumers to provide affirmative consent in a manner that demonstrates success with the hardware & software necessary to receive, use and retain the documents that are the subject of the consent. This test protects both parties. Consumers need the information contained in the e-docs and you need the assurance that it has been delivered. Otherwise, you are headed for potentially ugly customer relations problems, and Reg E and Z error notifications.

E-Sign has been, and continues to be, in effect. Whether your regulator has decided to examine for the demonstrable consent rule in E-Sign doesn't affect, as Richard and Andy have both pointed out, your potential liability if you are involved in a lawsuit about disclosures down the road.

The fact that the Fed has elected to postpone the mandatory effective dates of its E-Sign implementation rules on consumer regulations should likewise not be an issue here. From a practical perspective, the only thing the Fed added to the basic E-Sign mandates is the "public e-mail address" requirement for notifications. All the E-Sign requirements were already in effect before the Fed published the final interim rules.