We are implementing e-Statements. In our current paper process we include the required Reg. E Error resolution notice in the abbreviated format on the reverse side of the periodic statements.

My question is this: in the e-Statement environment the customer obtains the abbreviated reg. E notice but it is provided by why of a link to access it. Since it is not a 'non by-passable' link, does this meet the requirements of providing Reg. E required disclosures?

Lori

I haven't seen an opinion on this, but I wouldn't like it. The e-statement is generally a stand alone document and one the consumer can retain. A link only puts the customer at a disadvantage if they can't use the link for some reason. They can't read the important information. The idea is to give the existing customer the required disclosure, not a link. Links work sometimes, but I wouldn't favor it here.

I recommend using the abbreviated on paper statements. You could save bandwidth on the e-statements by going to the annual notice.

That was my thoughts as well. Let me throw this at you...we wil be sending e-statement customers an email letting them know their statements are available for viewing. What are your thoughts on putting the Reg. E alternative verbiage directly within this email....We could let modify our e-sign consent to indicate the important information within this email.....

Just thinking outside the box on this one. The only other alternative I see is to do an annual mailing of the Reg. E notice, along with the annual privacy notice.

Lori

Check out what your customers have agreed to receive electronically. If your eSign "demonstrable consent" only covers statements, you can't simply start sending other required disclosures (such as the error resolution notice or Reg E change in terms notices) electronically, too.

However, if consumers consent to e-delivery of the other Reg E disclosures and notices, then you'd be OK delivering bits and bytes instead of paper. If you use the "long form" annual disclosure, you can certainly use email (there's no personal information included), and it need not be sent "on or with" a periodic statement. You could, I think, just send an annual email notice that important information about error resolution is available on your web site (and provide a link directly to that information).

If you use the short form notice, it's supposed to be provided "on or with" periodic statements. IMO, pushing the disclosure to your consumer who has to pull a statement doesn't meet the "on or with" test. I suggest that if you push statements, you should include the notice with the pushed statement. If your statements are to be pulled down, include the notice with the pulled statement. In neither case should you include a link to the short form notice, because the notice would not be "on or with" the statement.

The only time the issue of a non-bypassable link comes into play is
"When a consumer contracts for an EFT service on the Internet and will be able immediately to initiate a fund transfer...."

Oh the logistics of it all...and the system limitations...don't you just love compliance Actually, it is fun trying to find a way to make it work.

Thanks for all the assistance.
Lori

The attitude of a compliance professional. I look forward to more of your posts.