Good morning,

We offer a checking account that has eStatements as a requirement. It is an option on any other checking or savings account. In the event the eStatement notification fails, due to a "bad" email address or the inbox in full, we were changing the customers to mailed paper statements and charging an "undeliverable estatement" fee. Upon response from the customer of the updated email address, or a remedy whereby any future emails will be delivered, we would refund the fee and change the account back to estatements.

Due to the increased mailing expenses and being an annoyance to us and the customers, someone in their infinite wisdom decided (without consulting the Compliance Dept.) to discontinue this procedure and the corresponding fee AS WAS DISCLOSED to the customer.

The procedure will now be to place an alert on the account and change the primary email address to a generic address until the customer is contacted with the updated email address. No pre-disclosure of this change was sent to our customers.

I'm very concerned with the fact that we are no longer sending the mailed statements, as we disclosed we would. I understand that it's up to the customer to inform us of their changed email address and/or to make sure we can deliver the estatements, which was also disclosed.

I'm not sure how to fix this. Help?

Are you actually delivering the statements by email or is the email a notification that the statements are ready to be viewed within their internet banking account?

It is an email notification that the statements are ready to be viewed.

I'm hopeful someone else will weigh in as I'm not 100% certain but I believe that, since only the email notification is failing, you aren't out of compliance. The statements are still available through their online banking; the email notification is just a courtesy. I'll continue to do more checking but I'm fairly certain that you're okay with not changing them back to paper statements as long as only the notification that the statement is ready to view is undeliverable.

Found it- http://www.bankersonline.com/technology/guru2012/gurus_tech040212a.html

You are not required to change them back to paper statements simply because the email notification comes back undeliverable.

Even if we disclosed to them that if the eStatements are undeliverable, we would change them to mailed paper statements? That is where I'm having a problem.

We disclose that if there is an invalid email address we will switch them to XX Checking. We do everything we can to obtain a valid email but in the event we cannot, we do switch according to our account disclosures.

How do you know that the eStatements are not deliverable? Don't the customers have to demonstrate to you that they can receive/view eStatements when they consent/sign up? It sounds like your email is a courtesy notification that the eStatement is ready.

Correct, the email notification stating that the statement is now ready is what I'm referring to.

We disclosed that we would change the account(s) to paper statements if the email notifications failed. We took that route vs. changing the product, as we would then need new disclosures and updated account agreements reflecting the product change.

Justin Case

The following link is no longer available....do you know if it has been moved?

Found it- http://www.bankersonline.com/technology/guru2012/gurus_tech040212a.html

We have somewhat of a similar situation to the original poster in the fact that we offer a free e-checking account that has eStatements as a requirement. It is an option on any other checking or savings account.

We now have a fully e-sign compliant process for customers to receive e-statements as an option....the process is a requirement for customers....the issue we are having is that customers who have signed up for the free e-checking account are not going in and signing up for the e-statements causing a lot of extra work changing them to different non-fee account (fully clearly disclosed) then changing them back once they realize the account has been changed.

We provide the e-customer at account opening a very clear one page disclosure that states they must enroll for the e-statements or account will be changed....with full instructions on how to enroll....

Any suggestions on what we can do to increase the odds of the customer actually enrolling??

I've thought of sending an e-mail with instructions and a link....or encouraging them to use their mobile devices at account opening?

Does anyone else deal with this? Any suggestions would be appreciated....

meant to say "extra work changing them to an account with fees"....not "to a different non-fee account"

When ATMs were introduced, we had a similar customer-follow-through problem. Finally, we realized that hand-holding was the only answer for many customers. Our CSRs would lead customers outside to the ATM and conduct a simple demo with a dummy card/account. After seeing how easy it was, they never looked back,

Even though you must have customers follow through with the ESIGN test drive on their own, bank staff could demo the process & show the new accountholders how easy it is. Nothing will magically get you to 100% follow-through, but "pump-priming" might be less time consuming than all the account changes you describe above.

Thank you, Richard....