We agree that the bank should consider UDAAP concerns in creating a free checking account on the condition that the customer has agreed to receive e-statements. However, we believe you may be able to offer such an account, provided that the proper disclosures are made.

Although we are not aware of any laws or regulations that would prohibit charging a fee for receiving paper statements, there is a chance that an examiner could see such a fee as unfair or abusive, particularly if the bank is aware that many of its customers do not have access to the internet or computers. Note that the CFPB has broad authority to deem any practice as “unfair, deceptive, or abusive,” even if the practice does not violate any law or regulation. 12 USC 5531.

Before using electronic statements, your institution must obtain each customer’s opt-in, as required by the federal Electronic Signatures in Global and National Commerce (E-SIGN) Act, 15 USC 7001(c)(1), and the Illinois Financial Institutions Electronic Documents and Digital Signature Act, 205 ILCS 705/10(a). Note that the electronic statement agreement for the free checking account would have to disclose the consequences of the consumer’s withdrawal of the consent to electronic disclosures, including the change to a different account type and any additional fees that would apply after the withdrawal of the consumer’s consent. Additionally the E-SIGN Act, and the Illinois Financial Institutions Electronic Documents and Digital Signature Act require banks to disclose “any conditions, consequences (which may include termination of the parties’ relationship), or fees” that would apply if the customer does not consent to electronic disclosures. 15 USC 7001(c)(1)205 ILCS 705/10(a).