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#874249 - 12/17/07 05:03 PM estatements
tsp Offline
Member
Joined: Dec 2007
Posts: 53
I am currently designing the e statment disclusre for our bank. I have two items I need clarification on:
1. If we comply with the requirements of the E Sign Act in our disclusre, ie customer consent, procedures to revert to paper statements, procedures to handle update of customer email address, procedures for hadling of returned emails, will we be in compliance with the periodic statement requirements of Regulation E?
Is it still a requirement that we must be able to prove that the customer did a test of their ability to receive the e statement at the time they signed up for e statements?

Thanks

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eBanking / Technology
#874270 - 12/17/07 05:24 PM Re: estatements tsp
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
2. Compliance with ESign still requires, for consumers, demonstrable consent, which involves a demonstration the consumer is able to access whatever form of disclosure you intend to use (push/pull, file format, etc.).

1. Compliance with ESign does not affect Regulation's periodic statement requirements, except to the extent that an electronic version of the statement will be considered "written" if ESign is complied with. But the Reg E statement requirements continue in force. The only difference is that you can send electrons instead of paper and ink.

Nothing in ESign addresses returned emails or updating of customer email addresses. But ensuring that you keep that information current is certainly a best practice.
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John S. Burnett
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#874509 - 12/17/07 09:23 PM Re: estatements John Burnett
Richard Insley Offline
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Richard Insley
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Toano, VA
Originally Posted By: John Burnett
Nothing in ESign addresses ... updating of customer email addresses.

It's important to note that ESIGN doesn't require the bank to chase down changing email addresses for customers using e-delivery, but Section 101(c)(1)(B)(iii) of ESIGN does require you to place this burden on the customer. Paraphrasing slightly, it says that you must "provide the customer with a clear and conspicuous statement ... describing the procedures the consumer must use to ... update information needed to contact the consumer electronically...."
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