Regulation from "E-Statement Agreement"

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Question:

A Q and A dated 10/26/09 by Richard Insley "E-Statement Agreement" states the following,"Although you are free to require e-statements as a condition of a new product, you can not require existing product-holders to relinquish paper statements and accept e-delivery." What regulation does this statement come from?

Answer:

My statement does not come from a regulation. It is a summary of the effects of 15 USC 7001, the federal ESIGN act.

ESIGN allows businesses to create 100% electronic services supported by electronic documents (including account disclosures required by various consumer protection laws and regulations.) These services may be offered to consumers for their consideration. Those who can't or won't accept e-documents are free to reject these offerings in favor of traditional, paper-based products. In cases where the consumer has already entered into a traditional account agreement (requiring official communication via paper documents), the business may not unilaterally demand that its account holders accept e-documents in place of paper.

First published on BankersOnline.com 5/9/11