Answer:
Answer by Andy Zavoina:No. You can go through ESIGN steps online. In fact, demonstrable consent cannot be agreed to in your lobby without the customer using a computer (and that isn't likely, possible, but not likely).
Answer:
Answer by Mary Beth Guard:First, you need to differentiate between consumer customers and business customers. If it is a consumer account of a type covered by Regulation E on which periodic written statements must be sent, you can satisfy the requirement for written statements with ones that are electronic, but only if you obtain the consumer's consent in accordance with the requirements of the federal ESIGN law. So, when you say a "legal agreement 'signed' by the customer" -- yes, ,but the legal agreement will be transmitted and accepted online and the signature will not be a traditional written signature. If you're talking about using e-statements on a business account, you don't have a regulatory requirement to furnish a written statement. Look at your deposit account agreement to see what you have contractually bound yourself to provide to the customer in the way of statements. There probably isn't a firm commitment on that subject. If there's not a written statement mandate, you could switch to an e-statement. Beware, however. If that business customer doesn't have a way to easily retrieve and check it, the time period for the customer to find and report forgeries and alterations will probably be expanded, which isn't in your bank's best interests.
First published on BankersOnline.com 6/25/07
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