Verbal disclosures

Posted By: Buddy the Elf

Verbal disclosures - 09/19/13 07:08 PM

If we provide the disclosure over the phone for a transfer initiated by phone, what sorts of things do we need to document (date, time, wiring instructions, amount, what else)? Does the phone line need to be recorded? Once documented and the customer decides to move forward with the transaction, we have to mail the receipt, correct?
Posted By: Buddy the Elf

Re: Verbal disclosures - 09/19/13 07:28 PM

Just wanted to add, I'm getting pushback related to providing the disclosures orally because the phone lines aren't recorded so we have no way to prove that we provided the disclosures. We aren't e-sign capable yet so we are going to be stuck with in-person only unless we can provide oral disclosures. While I prefer in-person wires of this nature, we have several customers who aren't near a branch to be able to come in.
Posted By: John Burnett

Re: Verbal disclosures - 09/19/13 07:43 PM

Oral disclosures take care of you for those transactions completed entirely by phone. Include information on cancellation rights in this oral disclosure. (But I do think you need to memorialize the essentials of the call, much as you've suggested. Should it take audio recordings to document compliance? I don't think so. You will have to deliver a written receipt unless the sender has provided demonstrable consent to electronic disclosures in accordance with the E-SIGN Act.

For delivering written receipts you have two options when you've conducted the transaction on the phone. First, you can mail the receipt by the next business day. Or, if the sender's deposit account is with you and is used to fund the transaction, you can include the written receipt with the next periodic statement or within 30 calendar days, whichever occurs first.
Posted By: Buddy the Elf

Re: Verbal disclosures - 09/19/13 07:43 PM

Thank you John! I knew I could count on you!
Posted By: zitch70

Re: Verbal disclosures - 09/20/13 02:52 PM

Most auditors will pass on the verbal disclosure compliance if your policy, procedures state that is what is done, and you have a script that complies with the model language. The auditors can always sit and observe that the script was read.
Posted By: John Burnett

Re: Verbal disclosures - 09/20/13 06:55 PM

Agreed. A script and procedures will be the foundation of that piece of compliance.
Posted By: dlcooper

Re: Verbal disclosures - 09/20/13 08:25 PM

So would the script need to cover, at a minimum: Transfer amount, Transfer Fees, Transfer Taxes, Total, Exchange Rate, Transfer Amount, Other Fees, Total to Recipient, Statement about non-covered third party fees, and statement about cancellation rights?
We would not need to include error resolution rights because we would send those out by next business day or with the next periodic statement?
Thanks for any clarification, we want to be specific in our procedures to the script.
Posted By: John Burnett

Re: Verbal disclosures - 09/20/13 08:39 PM

The script should include exactly what you need to include in the oral disclosure, and it should include instructions to your staff as to where each of the numbers to be provided is to be obtained. And yes, it would include the statement on cancellation rights.