Currently, we have posted on our web site, an enrollment form for automatic loan payments. The customer must fill out the form, print, and mail or fax it to us as it requires a signature.

We would like to incorporate a "submit" button on the form that once complete the borrower can click on and it will automatically send it to us We would like to incorporating a disclosure about the signature that says something like "typing your name on the signature line will constitute your agreement to the terms.

Not only would this expedite the process for the customer the submitted form can be coding so it can be scanned directly to our system.

You haven't exactly posted a question, but if you want to know how to turn a form submission into a binding contract, that's a legal question best directed to your attorney. The federal ESIGN act recognizes the validity of e-signatures, and your state's UETA should, too. Unfortunately, these laws don't tell you how to go about it.

If the payment is from a deposit at your bank to a loan at your bank, is a signature actually needed?

If my borrower called me and said "hey, set my loan payment on auto-transfer" I wouldn't require that to be in writing.

Richard, you are correct I did not ask a question... my mind is in too many places. Everyone here is so needy this week.

The Marketing Dept wants to put the form on our web site and have it submitted, without actual signatures, to our loan processing area. Personally, it is simply easier for "me" as the consumer to go to the account level and set up an automatic transfer. I cannot seem to get that communicated. So now if you want to have an auto-pay on a loan at our bank you have to print, sign and mail an authorization. Sorry to have bothered you with this. I need an asprin.

Since Regulation E doesn't cover the intra-institution automatic transfers for payments of loans of the account holder, there's not a requirement for a written authorization. Those banks that do use a written authorization often include it to show that it was not obtained as a condition of approving the loan (which would be a violation of the EFTA in most cases).