We are developing a new checking account that will require customers to receive an e-statement instead of a paper statement. We have an e-statement agreement that they will sign at account opening but it is basic and doesn't specifically cover anything about the E-sign act.

Are there any specific documents required for the E-sign act for the e-statement provision of this new account? All of our accounts are opened in person at one of our locations and no account disclosures are ever e-mailed to customers - they just will get their statement via e-mail.

There's nothing in your periodic statements that's required by Section 1005.9 of Reg. E or Section 1030.6 of Reg. DD?

I meant that no initial disclosures given to customers at account opening are emailed to them since all accounts are opened in person - those disclosures are printed and given to the customer. Emailed statements contain all of the required periodic disclosures for Reg E and Reg DD.

I was wondering what additional documentation is required for the E-sign act for our customers to agree to the electronic delivery channel for their periodic statement instead of receiving a paper statement.

All "disclosures required under this part [Reg. E, including Section 1005.9] shall be clear and readily understandable, in writing, and in a form the consumer may keep." In order to comply with that requirement, you have two choices: paper or ESIGN. Since this product is strictly tree-free, then you must march each new accountholder through ESIGN's informed demonstrable consent drill at the time the account is opened. We've had extensive discussions of the relationship between ESIGN and deposit statements since 2000--when both ESIGN and BOL came into existence. There are lots of old threads that might help.

Just confirming what I am reading. The customers would have to consent to Esign in order to get e statements. If they don't then you have to send paper? So you could not force customers to only receive e-statements; especially with REG E written requirements, correct?

I think that, if you read section 7001(c) of the E-SIGN Act carefully, you will see that you can offer the account only to consumers who provide you demonstrable consent to send their statements, disclosures, notices and other documents related to the account(s) electronically, and that withdrawal of that consent will result in the closing of the account.

... or conversion of the account to [account type here].

Thanks!

There isn't a direct connection between ESIGN and the opening or continuation of any type of account. The connection is indirect and Reg. E is the connector.

In order to open deposit accounts with EFT capabilities, Section 1005.7 of Reg. E requires a number of disclosures. Section 1005.4 says that all Reg. E disclosures must be delivered to the accountholder "in writing"...and that's where ESIGN enters the picture. Paper documents always satisfy Reg. E's "in writing" requirement. Electronic documents can also pass this test, but ONLY when you obtain the consumer's consent in the ESIGN-prescribed manner.

Periodic statements must comply with Section 1005.9 of Reg. E. As is the case with account-opening disclosures, Section 1005.4 says that statement disclosures must be delivered to accountholders "in writing." Once again, you have the choice of paper or ESIGN-enabled e-documents.

ESIGN prohibits cramdown of e-delivery on consumers who refuse to consent. That means you can't impose e-delivery on existing accountholders. It's OK to offer e-delivery to existing accountholders and to include incentives.

Consumers who open new accounts get the same paper/e-delivery choice, but you can implement their option at the product level instead of the individual account. Ex- Type A accounts receive initial disclosures and statements on paper and Type B accounts are limited to consenting customers who have completed ESIGN's informed demonstrable consent "handshake."