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#1599704 - 09/02/11 05:24 PM Online banking
Banker83 Offline
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Joined: Sep 2007
Posts: 34
When a customer opens a deposit account, can we just sign them up for online banking without them requesting the service? I view this as an "unsolicited" access device under Reg E and therefore the service would need to be provided unvalidated requiring the customer to request the validation. Am I on the right track?

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Operations Compliance
#1834687 - 07/19/13 05:36 PM Re: Online banking Banker83
Reed Offline
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West Coast
Bump

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#1834694 - 07/19/13 05:50 PM Re: Online banking Banker83
John Burnett Offline
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John Burnett
Joined: Oct 2000
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Cape Cod
I think it depends on what the customer can do "out of the box." If all you provide is viewing access unless the customer affirmatively elects to have inter-account transfer and/or bill pay access (by clicking a box after having logged in, perhaps?), I think you're OK.
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#1834725 - 07/19/13 06:25 PM Re: Online banking Banker83
Reed Offline
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Thanks, John.

Our customers are automaticlly enrolled in bill pay and have the capability through online banking to set up ACH credits and debits (with a paypal-style micro deposit authentication.

Thoughts?

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#1836408 - 07/25/13 04:19 PM Re: Online banking Banker83
StacyNBS Offline
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StacyNBS
Joined: Jan 2013
Posts: 20
Connecticut
My opinion is that a full enrollment including the ability to include transactions would require the customer's authorization before making it available.

Now, with that said. A number of institutions will create a piece automatically in their core system, but not complete the online piece until the customer requests it and reviews the proper disclosures. If that's what you mean by automatically signing them up you should be okay.

But if you're granting them the whole shebang, and potentially putting them at risk for online access that they don't even know about, I suggest getting language added to your signature card and having them agree/disagree right up front.
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#1836432 - 07/25/13 04:43 PM Re: Online banking Banker83
Reed Offline
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Thanks for your input, Stacy. We do include the billpay and online banking agreement in our account agreement. Our risk department monitors usage.

I'm just wondering about whether we are issuing unsolicited access devices. A consumer does have to agree to our account agreement (which includes the billpay and OLB agreement), but it's a long document and I don't think it's clear that they are requesting an "access device" when they agree to the account agreement.

Thoughts?

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#1837669 - 07/30/13 04:03 PM Re: Online banking Banker83
StacyNBS Offline
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StacyNBS
Joined: Jan 2013
Posts: 20
Connecticut
Despite the length of the document, if it is clearly spelled out in the account agreement that they will end up with online banking access, then technically I would think you're covered. I say this with the disclaimer that while I am a life long banker I am not a compliance or legal expert.

If we have to judge compliance by whether the client read and understood the disclosure then we're all in trouble. wink

With that said, you may want to make sure that folks opening new accounts are clear that online banking access is automatically provided and that they have the option of opting out of said access. You could even have them initial that piece of the document with a yes/no checkbox. Of course you'd have to back that up by removing access for those who have opted out.

Those are my thoughts.....
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I saw a bank that said '24 Hour Banking,' but I don't have that much time. ~Steven Wright

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#1837882 - 07/30/13 09:50 PM Re: Online banking Banker83
RRichmond Offline
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Joined: Mar 2008
Posts: 47
We could turn all of our accounts on for online banking when the accounts open, but the customer still doesn't have internet banking. They don't have internet banking until they register online as an internet banking user and receive the appropriate disclosure at that time. Unless you are establishing online credentials when you open the account, are you really signing them up for online banking?

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