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#2157165 - 12/13/17 07:51 PM REG E Periodic Statement Question
JC Offline
100 Club
Joined: Jan 2014
Posts: 145
Oklahoma
(3) Periodic statement; timely notice not given. A consumer must report an unauthorized electronic fund transfer that appears on a periodic statement within 60 days of the financial institution's transmittal of the statement to avoid liability for subsequent transfers.[i][/i]

Scenario:
Client signed up for online statements. Our practice is that we email the client when statement is ready to be viewed monthly. Client changes his email address and is not longer getting our monthly email. Is there a regulatory requirement to let the client know his statement is available?

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eBanking / Technology
#2157193 - 12/13/17 09:42 PM Re: REG E Periodic Statement Question JC
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 78,922
Galveston, TX
No.
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#2157206 - 12/13/17 10:50 PM Re: REG E Periodic Statement Question JC
Richard Insley Offline
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Richard Insley
Joined: Oct 2000
Posts: 10,049
Toano, VA
JC - You may have boiled this question down a bit too far. I agree with Randy's answer--there isn't a direct regulatory requirement--but that's not what you should be investigating. The real question is whether you have complied fully with Reg. E's requirements for periodic statements.

Section 1005.4(a)(1) requires you to deliver all Reg E disclosures (including the periodic kind) "in writing and in a form the consumer may keep." Paper always satisfies the delivery requirement, but when you offered and your customer consented to electronic statements, you added another layer of complexity that now becomes part of this investigation.

Electronic delivery of Reg E's periodic disclosures becomes the legal equivalent of paper-based delivery IF (and only if) you comply fully with the informed demonstrable consent provisions of the ESIGN Act. One of ESIGN's pre-consent disclosures (Section 7001(c)(1)(B)(iii)) is: "...the procedures the consumer must use to...update information needed to contact the consumer electronically...." Review what you said in that part of your ESIGN pre-consent disclosure. If it clearly said the customer is required to notify you of a change in his/her email address and provided instructions that would have prevented the problem at hand, then you have not failed to provide the Reg E disclosures "in writing." If the customer has not received statements due to his/her negligence, then it's on the customer, not you.
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