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#1307685 - 12/16/09 08:25 PM Re: E-Sign [Re: Richard Insley]
morirse de risa Offline
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Midwest
Thanks for your detailed answer Richard, I appreciate it.

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eBanking / Technology
#1307936 - 12/17/09 01:47 AM Re: E-Sign [Re: morirse de risa]
Sheldon Hendrix Offline
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Ditto. Thanks for the detailed response!

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#1311194 - 12/22/09 02:29 PM Re: E-Sign [Re: Sheldon Hendrix]
DD Regs Offline
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Somewhere in the middle
Richard or Andy or anyone else much more knowledgable of E-sign than me. We are considering a new "green" account that would require e-statements. My first question, is how do we "require" e-statments at account opening and is this permitted under the Reg? Would we capture a signature at account opening that says, "Yes I want e-statements" then have them consent also online before the first statement print? If they don't consent online, we will have already disclosed to them that if they do not complete the estatement registration online, they will be charged a monthly account fee of say $5.00?

I know this is long, but I am just trying to get my brain rapped around this.

Edit Reason: spelling errors and clarify one thought.
Last edited by DD Regs; 12/22/09 02:33 PM.
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#1317235 - 01/04/10 09:14 PM Re: E-Sign [Re: DD Regs]
DD Regs Offline
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DD Regs
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Somewhere in the middle
Bump?
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#1318359 - 01/05/10 10:23 PM Re: E-Sign [Re: DD Regs]
Brad B Offline
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KS
We offer an account that requires electronic statements. We added that as a miscellaneous term in our TISA disclosure. The customer, though, has to enroll through the consent process we have through our online banking product. That can't happen at the new account desk, it has to take place from the PC the consumer will be using to receive the disclosures. That way they can show us that they have the ability to receive the disclosures. In return for going to an electronic statement, we pay a higher interest rate for this account than we would for a paper statement account. We also monitor this account type to ensure all the customers who have this higher rate have actually enrolled for e-statements. If they haven't, we'll convert them to the lower paying interest rate account. It looks like you would like to charge a fee if they haven't enrolled. You can do that, you just have to disclose it (after 30 days if you haven't completed the process to receive your statements electronically we will charge you a monthly fee of $xx, etc.)
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#1320567 - 01/08/10 12:59 AM Re: E-Sign [Re: Brad B]
Andy_Z Online
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It sounds like you have your bases covered. If you substitute the e-statement for paper, and the e-statements contains disclosures you have to give in writing, E-Sign applies. As is noted, you can get their intent at opening, but you need a sound demonstrable consent procedure that verifies they can receive your email, get to their statements and read them.

So, if the process fails, what will you do? That is where you have disclosed a backup account that will trigger a fee or whatever, the higher cost of this other account. So you'll be making E-Sign disclosures and new account disclosures and you may need to restate those new account disclosures as they'll vary fom teh e-statement account, unless you clearly make both at opening with the trigger details. I'd research that more prior to implementation, but that should be fine.

You need that backup account plan anyway, because they are free to change at any time.
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#1727408 - 08/03/12 07:47 PM Re: E-Sign [Re: FirstCommEA]
Shopgirl Offline
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Originally Posted By: FirstCommEA
This is a question & answer that was on our BOL Speedier Lending with E-Disclosures Webinar:

Question: If we email our disclosures to our customers & they print them off, sign them & email or fax them back to us, is that sufficient? We are not talkign loan contracts, we are talking simply disclosures.

Answer: This is the hybrid method I discussed. You are sending disclosures that later consummate the transaction when you receive them back. You have paper with a wet signature. E-SIGN won't apply in this case. You are not substituting bits and bytes for paper, you are using paper. Becuase they print and return them, no demonstrable consent is needed in advance. If they couldn't handle them, you wouldn't have gotten them back.


It was stated in this thread that Andy Zovinia gave the above answer.

Andy, our Mortgage department seems to be going by this "hybrid" method but I can't find any support for this method. From what I'm reading is the emailed disclosures should be compliant with ESIGN. Can you elaborate or direct me to your support for this hybrid method? I appreciate your feedback.

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#1734451 - 08/23/12 07:33 PM Re: E-Sign [Re: FirstCommEA]
Trees Offline
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We have the E-signature disclosure for e-statements and online loan applications. We are in the process of implementing an online bill pay product with an outside vendor. We have an agreement for that product with all the cut off times, types of bills and amounts we won't pay, etc. The vendor will allow customers to set up a means of communicating to the customer and vice versa.

I don't see where, for this product, we need the E-sign document. No bank required written notices will be sent electronically. (customers wanting the service must sign up for the bank's transactional website, however.

Am I missing something?

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#1734494 - 08/23/12 08:05 PM Re: E-Sign [Re: Trees]
Richard Insley Offline
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Toano, VA
Originally Posted By: Trees
I don't see where, for this product, we need the E-sign document. No bank required written notices will be sent electronically.
ESIGN only comes into the picture when federal law requires you to deliver disclosures or some other document "in writing" and you want to use electrons instead of paper for the delivery.
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#1734519 - 08/23/12 08:37 PM Re: E-Sign [Re: FirstCommEA]
Trees Offline
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Thank you Richard. That confirms things for me.

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