During the recent ABA Regulatory Compliance Conference session on e-Banking, one of the speakers indicated that infrequent requests for paper copies of periodic statements should not be assessed a fee. Is this a "best practice"?

E-Sign requires you to allow the request to go back to paper. Though an intermittent request isn't a cancellation of the e-form. I didn't hear the statement but perhaps it meant to keep the customer happy by giving them this, and so you could keep the lower-delivery cost e-statement as the primary method. Certainly if you priced for the e-delivery only and you disclose a fee for paper, you can do this absent any other requirement. Texas as an example requires that we provide two items from a statement in paper form for free. That is not the statement, but two items in the contents.

I don't think E-Sign requires that you allow the consumer to go back to paper. It does require that you disclose how the consumer can go back to paper, if paper is an option for the type of account offered. But you could have an account that you set up that requires electronic disclosures and does not offer paper disclosures at all. In such a case, if the consumer no longer wanted to receive electronic disclosures, they would have to close the account or switch to a different type of account that allowed for paper disclosures.

I agree with that assessment.

Thanks Jim and Andy. We are developing a new "e-Account" which will require e-statements only. I was just going to begin researching if this was allowed. Jim, you saved me some time today!

We are discussing a switch to having all new accounts being e-statments. If the members wants a paper copy they have to "opt-out" of the default electronic statement.
I want to make sure I still have a grasp of ESIGN. These new accounts are still going to have to log on from home and demonstrate their ability to access the e-statement - right?
From a risk standpoint, I am thinking the accounts should not be set up at opening with the e-statement code but rather a paper copy code and when the member signs on and clicks the acknowledgement, the code can automatically change to an electronic delivery code.
I would appreciate any other suggestions on how your FI is handling this type of situation.

I have seen some local banks use the e-statement as a new account selling point.
Could we have one account type that is marketed to the electronic audience that in addition to other benefits, has e statement as the statement delivery channel Or would they still need to opt in to this type of delivery?
My first thought is they are consenting to the electronic format if they open this type of account.

You can price the product based on e-delivery. If they want out of e-delivery, they may have to select another product, at a higher cost.