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Reg E and Check Card Disputes

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Question: 
Does Reg E allow us to deliver the required notification letters via email?
Answer: 

The answer is in 205.4(a)(1) where it says:Form of disclosures. Disclosures required under this part shall be clear and readily understandable, in writing, and in a form the consumer may keep, except as otherwise provided in this part. The disclosures required by this part may be provided to the consumer in electronic form, subject to compliance with the consumer-consent and other applicable provisions of the Electronic Signatures in Global and National Commerce Act (E-Sign Act) (15 U.S.C. 7001 et seq.). A financial institution may use commonly accepted or readily understandable abbreviations in complying with the disclosure requirements of this part.

As long as you have complied with E-SIGN (there are plenty of threads on that topic if you just do a quick search), you are permitted to deliver the required notifications electronically. Remember that your communications to the consumer have to be in the same format that was used to consent, in a manner that reasonably demonstrates ability to receive and read the disclosures. This can be confusing, because acceptance of E-SIGN may have been through your e-Statement process which may or may not involve e-mail and/or e-mail attachments. Also remember that unsecure e-mail is not a secure facility for sending nonpublic personal financial information, and would not be the best choice for communicating Reg E error resolution notices.

First published on BankersOnline.com 11/15/10

First published on 11/15/2010

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