Answer by Richard Insley:Hopefully, your consent covers the disclosures, not the statement itself. Review the wording of the ESIGN language carefully. If you listed this particular disclosure or swept it in with general language about Regs DD and E, then you are authorized to substitute electrons for paper. If you failed to mention it, then you're stuck with paper until you can amend the consent.
Answer by John Burnett:It's a good idea to review Regulations E, DD and CC for disclosures that (1) are required to be made in writing, and (2) could be effectively made electronically, if you have ESIGN consent. Then make sure your ESIGN disclosure and consent process cover all that you want to make available electronically.
- Account disclosures, under Regulations E, CC and DD
- Statements, under Regulations E and DD
- Change in terms notices under Regulations E, CC and DD
- Maturity notices and disclosures for time deposits under Reg. DD
- Annual or periodic Error Resolution Rights notice under Regulation E
- Any notice or disclosure required by Section Section 205.10(b) and (d).
- Notices required under section 205.11(d) of Regulation E
- Notice of hold under Regulation CC -- probably not a good candidate for e-disclosure, unless given after the fact.
- Notices of non-payment under Regulation CC, section 229.33(d)
- Notice of dishonor under UCC Section 3-503 -- Check the language in your state's UCC. Most permit electronic notice (without any need for ESIGN compliance).
First published on BankersOnline.com 3/31/08