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#77316 - 05/01/03 03:41 PM
Electronic Statements
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Platinum Poster
Joined: Mar 2002
Posts: 721
California
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If a customer ask's to have their statement sent electronically, are there requirements we need to follow? e.g. Authorization forms, 30 day notice requirement, etc. Or, if the bank should decide to give the customer the option of electronic statements, what steps should be taken. Thanks for your input.
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#77317 - 05/01/03 04:32 PM
Re: Electronic Statements
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Anonymous
Unregistered
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We have them fill out a small form that they sign that basically says you will no longer receive your statement via tradional mail and only via e-mail. I guess we feel we're covered. We give the option at account setup and have done statement stuffers with the same form. We've got about 15% of our retail base getting their statements this way.
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#77318 - 05/01/03 04:56 PM
Re: Electronic Statements
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Platinum Poster
Joined: May 2001
Posts: 715
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For starters check out the E-Sign regulations.
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#77321 - 05/01/03 09:10 PM
Re: Electronic Statements
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100 Club
Joined: Dec 2002
Posts: 142
Southeast Michigan
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Since email is not considered secure. How are privacy issues addressed? Do you actually send the electronic statement via email or does the customer get notification to log in to your web site and pick it up through a secured session? Just curious as we are looking at offering this account feature.
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#77322 - 05/01/03 10:33 PM
Re: Electronic Statements
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Platinum Poster
Joined: Mar 2002
Posts: 721
California
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We have a secure encrypted email in place that requires a password. It goes through a secure data center and can be sent certified or non-certified delivery.
It sounds as though our first step would be to have a written request from the customer requesting e-statements. Once we have the authorization the only other electronic disclosure that would be required is if we have a change in terms relating to their account.
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#77323 - 05/01/03 10:56 PM
Re: Electronic Statements
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Platinum Poster
Joined: Feb 2003
Posts: 881
Big Sky Country
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Quote:
Once we have the authorization the only other electronic disclosure that would be required is if we have a change in terms relating to their account.
Not necessarily. Are you providing the Reg E Error Resolution disclosure with each periodic statement, or sending the long form annually? If you normally send the short form with each periodic statement, that throws a kink into the entire e-statement delivery system.
Like Andy said, you have to go back to demonstrable consent. You have to prove that the customer can not only receive the statement (and accompanying disclosure) at the e-mail address you send it to, but that they can ALSO open it and see the encrypted info. They may not have Adobe Acrobat, or whatever you are sending the encrypted info in. E-SIGN says that simply delivering the statement isn't enough. You should be having the customer verify a codeword or some other information in a preliminary encrypted "statement" BEFORE actually sending them the real deal.
It is a big pain in the patookey. And, if you get the e-mail back as undeliverable, you have to send it another way, either via another (demonstrably consented) e-mail address, or snail mail.
_________________________
Me, Type A? Maybe - I'm not done analyzing it yet.
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#77324 - 05/01/03 11:00 PM
Re: Electronic Statements
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Platinum Poster
Joined: Feb 2003
Posts: 881
Big Sky Country
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Check out this huge thread about the subject. It will either help a ton or scare the wits outta you! E-SIGN vs. UETA
_________________________
Me, Type A? Maybe - I'm not done analyzing it yet.
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#77325 - 05/02/03 02:18 PM
Re: Electronic Statements
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Anonymous
Unregistered
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Maybe I’m being naive, but here’s the way I see it.
If a customer tells you that they live at 110 Elm St, Anytown, USA. You assume that when you send them their statement they live there and they get it. You don’t ask them if they have the capability to open their mailbox and retrieve the statement. You don’t ask them to call and let you know that they got it. You don’t ask them if they have the ability to read.
Why wouldn’t the same hold true for e-statements? If the customer requests to receive their statement this way and gives you an email address. Can’t you assume that they are getting it?
So as far as all this “demonstrable consent” goes, maybe we our on “thin ice”, but we just don’t see a problem. If our regulatory body does criticize us, I’ll let you know. If anyone already has been criticized after implementing (ITI’s distribution) please let me know.
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#77326 - 05/02/03 02:30 PM
Re: Electronic Statements
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10K Club
Joined: Oct 2000
Posts: 27,769
On the Net
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The difference is many more things can go wrong with the new technology of e-mail, vs what we are accustomed to in the snail mail environment.
I would urge you as a compliance professional and an officer of your bank to ensure your procedures are correct. Your examiner may or may not discover it. That won't help you if customers sought litigation for some reason. If you are confident it is fine, bring it to the attention of your regulator, come back here and tell me. These are new rules we are all getting used to. But your process is not compliant with my read of the legal requirements.
_________________________
AndyZ CRCM My opinions are not necessarily my employers. R+R-R=R+R Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell
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#77327 - 05/02/03 02:59 PM
Re: Electronic Statements
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Power Poster
Joined: May 2002
Posts: 3,608
Near the Land of Enchantment
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The reality of the compliance world is that sometimes we do things just because the law requires it. If no banking regulations existed, and assuming a very conservative, consumer-conscious management - how many of the current regulation requirements would we implement?
In this case, no regulation requires us to verify that a customer can read, open their mail box, etc., but one does require that we verify a customer can receive and open an e-statement!
_________________________
Opinions my own.
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#77328 - 05/02/03 03:01 PM
Re: Electronic Statements
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10K Club
Joined: Oct 2000
Posts: 10,228
Toano, VA
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Anon- The difference between paper-based delivery and e-delivery is that the regulations in question (Regs DD and Z for statements) require that these periodic disclosures be "written" or "in a form the consumer may keep." Until the federal ESIGN Act, there was no legal way to substitute electrons for paper. Since ESIGN's effective date in 2000, you have a legal way to e-deliver "written" disclosures. If you don't follow the ESIGN system, your disclosures are not "written" and your regulator may conclude that you have not given the disclosures. This conclusion might be followed by a directive to provide, retroactively and on paper, all the disclosures that have not been "written." Penalties may also apply.
_________________________
...gone fishing.
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