Answer:
by Randy Carey:
There is no requirement to obtain a signature in order to order a credit report under the FCRA. So how you choose to proceed is really up to your organization.
1. REPORTS “IN CONNECTION WITH A CREDIT TRANSACTION INVOLVING THE CONSUMER”
A. Credit application. An application by a consumer for credit gives rise to a permissible purpose
to obtain a consumer report, regardless of form. When a consumer applies for credit, whether
in person, by phone, by mail, or by electronic means, the creditor has a permissible purpose to
obtain a consumer report on the applicant, and thus does not need specific authorization from
the applicant.
Answer:
by Richard Insley:
Both your state's UETA and the federal ESIGN act make electronic signatures legal--without limitation, regulation, or guidance. What you are willing to accept as a customer's electronic "X" is a risk-based business decision.
If your online application-taking facility triggers the delivery of any federal disclosures, then you are saddled with ESIGN's "informed demonstrable consent" rules. This part of the ESIGN act is very specific as to timing, content of pre-consent information, and method of obtaining each customer's consent. We have discussed demonstrable consent extensively (mostly in the eBanking / Technology forum) since the inception of BOL.
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