We're wondering that as well. At our place the ppl that sign up for automatic payment do it for a reason, they don't what the paper or to deal with the hassle of remembering to make their payments. So, in order to protect them we might have to send them a statement (that they don't want) with information on it so an ID Theft person can steal from their mailbox.
Another thing we're wondering is if its loans originated going forward. Our loans originated prior to 2004 still use passbooks, will they all need converted?
We're currently looking into being able to deliver them electronically and the cost of that vs cost of producing and mailing the paper statement. We do that on on deposit side. Is anyone doing that now on loans?