Are there any disclosures that must be given out when a customer signs up for online banking. Our website has the following features. Only customers with open accounts can sign up, we don't give the capability to open any new deposit or loan accounts on the site, there is no bill payer. Presently on our website, we offer the ability to transfer from one account to another (in-bank only), preview statements, balances of accounts and history, and order checks, savings bonds, and travelers checks. The way I look at it, we have already given out any disclosures when opening the deposit or loan accounts. Am I right? Am I missing anything?

Does anyone have any thoughts???

Reg E requires a new EFT disclosure to be given in this case. Read the commentary to section 205.7(a)

4. Addition of EFT services. If an EFT service is added to a consumer’s account and is subject to terms and conditions different from those described in the initial disclosures, disclosures for the new service are required. The disclosures must be provided when the consumer contracts for the new service or before the first EFT is made using the new service.

Required Reg E disclosures must be done "in writing", so that means you need to go through the ESIGN consent drill if Reg E disclosures must be given online.

We mail a Reg E disclosure to the customer with a "key" that is needed to finalize the identification of the customer when he logs on the first time after registering for internet banking. We also have an agreement that the customer agrees to prior to registering. If you would like to view it you can go to our website at www.citizensstatebanknya.com and click on the gold EZ Net button. At the bottom you will see a link for the Agreement.

There are some things to ask and answer to yourself. Does the customer give anything up for this? That is, is this an additional delivery channel or an alternate?

Savings bonds, Travelers Checks, funded from where?

Account to account transfers, same ownership required on the accounts?

If E-sign is in effect, demonstrable consent requirements may not be met if sending them a disclosure means they don't prove they can do something. If UETA applies in your case, life may be much easier if you make it so. But please don't abuse UETA's (lack of) requirements.

Andy,

Could you please help me find some guidelines for
account to account transfers done by the customer calling the bank and asking to transfer funds from their account
to some other persons account? No agreement in writing just a phone call. I see a big liability here but need some reference to back it up.
Thanks for any help you can give me.

Unless you can verify that you are talking to YOUR customer who OWNS the "from" account don't do it. If you want to provide optimum customer service, you can do so but you are accepting risks. If the customer comes in later and asks where their money went, you have no authorization and are completely exposed to a claim.

Your deposit agreement may address these transfers and require authorization either in writing or done by the customer after they have ID'd themselves with adequate logon procedures.

Colleen:

A disclosure is required, but simply post the disclosure online and direct customers to the disclosure as part of the process when they "sign up" for the service (no actual signature required). Place a statement on the internet banking site that, in effect, calls the disclosure to their attention once again with a link back to the disclosure.

We maintain the same set up as you have and it's been examined twice, passing each time.

Ipso, just to be clear to other readers, you addressed your response to the 7 month old question of Colleen. Anon reopened the post but with a telephonic request from the customer, not an online transfer disclosure.

Thanks, Andy, details are important!