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E-Sign Opt-In - Must It Be Handled Electronically?

Must the E-Sign disclosures and opt-in be delivered electronically(such as by viewing and accepting on a webpage) or can it also be disclosed and accepted using a paper document?

Answer by Richard Insley:Pre-consent disclosures can be delivered on paper but consent must be electronic and the act of consenting must demonstrate (a higher standard than "declare") the customer's successful use of your e-delivery system.


Answer by John Burnett:Of all of the e-sign requirements, it appears to be the demonstration part that banks just don't get. My own new bank just signed me up for e-statements without asking me to demonstrate anything. The question comes up so often here that I'm convinced that many e-statement vendors don't understand the law.

The danger for the bank is that a court could agree with a customer alleging that statements or loan disclosures were never delivered in written form because of the bank's failure to obtain demonstrable consent. The customer has to show that he/she can get the disclosures and display or print them in legible form.

First published on 3/31/08

First published on 03/31/2008

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