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Electronic Notice/Disclosure Through Mobile Alert

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Question: 
We are looking into providing electronic NSF notices; OD first OD and current balance; loan payment reminders and past due reminders; CD interest payment due date; CD renewal-maturity date with current balance; CD Maturity-Maturity Date and Current balance; and loan balance notifications all through mobile alerts. This will be provided through our core and not through our online banking/mobile product.​ We are mainly focusing on providing the NSF and OD notices through mobile alerts at this time. I found on BOL your webinar “E-SIGN – Use it Write or Not at All” and wondered if this would apply or is there another webinar that would assist us to make sure we comply with our intention of these electronic notices and disclosures through mobile alerts?
Answer: 

ESIGN only applies when you need e-documents to become the legal equivalent of paper. That need arises when two conditions are met: (1) the paper documents contain federal disclosures of some type, and (2) the federal law or regulation that requires the disclosures also says they must be delivered "in writing."

ESIGN functions like a license. Once you have obtained a customer's consent (in the ESIGN-prescribed manner), regulators and courts must view your e-documents as "written." You can also obtain ESIGN consent for documents that don't have to be "written", but that's totally up to you.

The short answer to your question is "it depends." Compile a list of every notice or other customer communication you want to e-deliver. Then, review each item individually. Determine if it's required by any federal reg. If not, then that item can be handled any way you want. If the item IS required by a reg, review that reg's general delivery requirements...looking for any requirement that the item must be provided "in writing" (or equivalent language.)

First published on 09/17/2017

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