I was not sure if this post belonged in this forum or in the Operations forum, but here goes... When we open an account, we give the client our Electronic Banking Disclosures. These disclosures are all-encompassing, and include all mandated Reg E Disclosures for all products and services we offer even if the client has not requested those services at the time. If the client decides at a later date that they want to sign up for bill payment and electronic banking, they will soon be able to do that electronically. Will this necessitate electronic disclosure of the information they received initially, even though nothing has changed? We are going to make the disclosures available online, but do not feel, based on the Reg E commentary on 205.7 that we are required to go through e-sign to redisclose. Am I correct, or have I missed something?
Thanks,
Leslie

The disclosures should be within a close proximity of the time the services are used. If this is done by e-sign or traditionally, that is up to you. But if the customer may receive a disclosure months or years before entering into new transaction territory, re-disclosure is necessary.

§205.7 Initial disclosures.
1. Early disclosures. Disclosures given by a financial institution earlier than the regulation requires (for example, when the consumer opens a checking account) need not be repeated when the consumer later enters into an agreement with a third party who will initiate preauthorized transfers to or from the consumer’s account, unless the terms and conditions differ from those that the institution previously disclosed. On the other hand, if an agreement is directly between the consumer and the account-holding institution, disclosures must be given in close proximity to the event requiring disclosure, for example, when the consumer contracts for a new service.

Andy,
I agree in part, but the commentary goes on to say:
" 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."
In this circumstance, the EFT additional service will not have terms and conditions that differ from those originally given to the client in paper format at account opening. Any changes in terms made since account opening would have been mailed to the client when those changes occurred, so they would always have the most up-to-date disclosures in paper format.
I don't necessarily disagree with you, but our Electronic Banking provider is stating that disclosures are not necessary, and they swear they are in compliance. I just need a good argument if I am to combat that stance.
Leslie

My experience is that you will better meet the intent of the reg, reduce potential liability and provide better answers in an exam on this topic when there isn't a year or two between disclosure and transaction. It works for me.