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#2184942 - 07/11/18 06:00 PM EDocuments
Annonymoussss Offline
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If the customer signs up for Online Banking and consents to electronic delivery of e-documents using their own device in the branch, and the documents are always retrievable via Online Banking, does that satisfy a disclosure in the form the customer can keep? If at any time we update the disclosure, when the user signs in, they must agree to the new disclosure, which will then replace the old disclosure retained in Online Banking. Obviously, the customer may opt-out of e-documents at any point (and vice versa) and we must adhere to their decision(s).

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eBanking / Technology
#2184953 - 07/11/18 06:29 PM Re: EDocuments Annonymoussss
Richard Insley Offline
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Originally Posted By Annonymoussss
the documents are always retrievable via Online Banking...form the customer can keep?
What file format is used for the documents containing the payload disclosures?
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#2185257 - 07/13/18 12:44 PM Re: EDocuments Annonymoussss
Annonymoussss Offline
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PDF format

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#2185276 - 07/13/18 02:17 PM Re: EDocuments Annonymoussss
Richard Insley Offline
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I read your original post several times before deciding that your main concern is the minimum period of time you must store e-communications online for unrestricted retrieval by the consumers who have consented to the use of e-delivery in lieu of paper. This question appears to be limited to deposit accounts with electronic transaction and communication capabilities, so we'll limit this discussion to the impact of your consumer deposit account agreement, state law, ESIGN, Reg. E, and Reg. DD. If you're also concerned about revolving credit or other types of products, most of the same principles will apply.

There are two ways to effect e-delivery of documents (all file formats.) The laws & regs. don't use the terms "push" and "pull", but we've adopted them in the banking industry as clear labels for the two system configurations you can choose to get electrons from you to the consumer.

Your original post describes a "pull" system, and it's only in such a system that your question would be asked. If you had implemented a system that used ordinary email to deliver attached pdf files (a "push" system), retention of the e-delivered document would be up to the consumer--just like envelopes in the U.S. Mail. The consumer may choose to keep the documents forever or throw them away unopened. That's the consumer's choice and you have no duty beyond putting the documents in the consumer's hands.

Federal law (ESIGN) and regulations (E and DD) do not impose higher standards on "pull" systems than "push" systems. Once the e-documents are "in hand" (or within electronic "reach"), you have "delivered" them. State law could require you to post or maintain courtesy copies of certain e-delivered documents, but I don't know of any such laws at the moment. It's also possible that you have self-imposed this burden as a feature of your deposit service agreement. If so, you can amend the agreement if there are problems or excessive costs.

Once you have settled on the delivery methods that work for you and your consumer customers, review Section 7001(c) of ESIGN to be sure you have touched on all of the necessary elements that must be in a preconsent disclosure. One of these elements is "...a statement of the hardware and software requirements for access to and retention of the electronic records." Then, confirm that the consent "test drive" forces the consumer to demonstrate (prove) that s/he has the hardware, software, and savvy to reach out and take delivery of your e-documents. You are not required to make any effort to assure that the consumer can (or will) actually retain the documents.
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#2185302 - 07/13/18 03:23 PM Re: EDocuments Annonymoussss
Annonymoussss Offline
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Yes, we have a pull system. I am strictly speaking about the online banking agreement and ESIGN agreement for now. We may look into other disclosures in the future.

We retain these docs that are the "older versions" in-house anyway based upon retention.

Thank you for your help on this. It was very helpful.

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#2185310 - 07/13/18 03:56 PM Re: EDocuments Annonymoussss
Andy_Z Offline
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In my experience most of the forms the bank retains allows the consumer to save these if desired. If your system does that and it isn't hidden, the consumer can retain them.
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#2186469 - 07/23/18 05:15 PM Re: EDocuments Annonymoussss
Annonymoussss Offline
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Thank you Andy. What if the consumer uses a tablet to open the account? Does the same hold true? Can they save the documents and is that deemed appropriate and in compliance with ESIGN?

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#2188908 - 08/13/18 06:14 PM Re: EDocuments Annonymoussss
Annonymoussss Offline
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Joined: Apr 2009
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Could anyone help me with ESIGN? I am trying to find out if the consumer uses a tablet to open the account can they save the documents and is that deemed appropriate and in compliance with ESIGN? And how would we show demonstrable consent?

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#2188962 - 08/14/18 01:55 AM Re: EDocuments Annonymoussss
Richard Insley Offline
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Does your "online banking agreement" contain the disclosures required by Section 1005.7 of Reg. E? If so, these disclosures must be in writing, and in a form the consumer may keep. If these Reg. E "initial disclosures" are provided earlier in the relationship or in another manner (on paper, for example), then there is no federal legal requirement to invoke ESIGN. Unless state law requires contracts to be in writing, then using either your state's UETA or ESIGN will be optional.

Whether or not a customer can save an electronic document on his/her tablet is a hardware/software (not legal) issue. If ESIGN applies, then you are required to spell out for the prospective e-document recipient what is the minimum hardware/software platform s/he will need in order to retain the document.

I've never owned or used a tablet, but can't imagine a device that would be capable of accessing the internet and opening files, but would not be capable of saving a .pdf file for later use.

Neither the demonstration nor the consent must acknowledge or demonstrate that the consumer can actually retain e-documents. All you're required to do is tell customers the minimums...the rest is up to them.
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#2189983 - 08/21/18 07:32 PM Re: EDocuments Annonymoussss
Annonymoussss Offline
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Posts: 32
Thank you Richard.

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#2190017 - 08/21/18 09:37 PM Re: EDocuments Annonymoussss
Richard Insley Offline
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Richard Insley
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Toano, VA
Re-reading my post a week later, I could have been clearer.

If you determine that one or more of the documents you want to e-deliver contain disclosures (or other content) that a federal law/regulation says must be "written", then ESIGN applies.

Whenever ESIGN applies, you must provide the list of pre-consent disclosures (hardware, software, paper copies, etc.) and you must obtain the consumer's consent. Part of the consent is a "test drive" that will prove (demonstrate) that the consumer has the hardware, software, and savvy to receive, open, and use your electronic document. The "test drive" does NOT require a demonstration that the consumer can retain the document--only receive, open, and use it.
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#2191447 - 08/31/18 06:03 PM Re: EDocuments Annonymoussss
Annonymoussss Offline
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Joined: Apr 2009
Posts: 32
Thanks again Richard.

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