The bank is going to start converting check payments for loans into ACH transactions. It is my understanding that the affected customers must Opt-In to check conversion before the bank can start this activity. Does anyone have any guidance on this? I do have a disclosure available to send to all affected customers but must they sign a disclosure and send it in?

I think if you 'bill' for each payment, beginning 01/01/07 you have to send a disclosure with each bill. See the Regulation E final rule that was issued on 12/30/05.

http://www.federalreserve.gov/boarddocs/press/bcreg/2005/20051230/attachment.pdf

Reg E requires a disclosure in or on each bill. If you use a coupon book, you only need one disclosure, printed on the front cover (inside or outside).