IBA Compliance Connection

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When a customer comes in to open a deposit account, we are going to begin using a pad to capture the customer’s signature. If the customer does not want the account opening documents for their records, are we required to print and provide them anyway? If they can “opt out” from receiving printed documents, do we have to physically document that anywhere in the file (in the form of a signed disclosure from them), or can we just make a file note that states the customer wished not to be provided copies?

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Generally, we do not recommend allowing a customer to “opt-out” of receiving the required account opening disclosures, irrespective of whether the customer provides a physical or digital signature. If a customer does not wish to receive printed disclosures, we recommend walking the customer through the E-Sign Act’s disclosure and consent procedures so that your bank may deliver the necessary disclosures electronically.

For resources related to our guidance, please see:

  • E-Sign Act, 15 USC 7001(c) (“(1) Consent to electronic records. Notwithstanding subsection (a), if a statute, regulation, or other rule of law requires that information relating to a transaction or transactions in or affecting interstate or foreign commerce be provided or made available to a consumer in writing, the use of an electronic record to provide or make available (whichever is required) such information satisfies the requirement that such information be in writing if

(A) the consumer has affirmatively consented to such use and has not withdrawn such consent;

(B) the consumer, prior to consenting, is provided with a clear and conspicuous statement . . . ;

(C) the consumer (i) prior to consenting, is provided with a statement of the hardware and software requirements for access to and retention of the electronic records; and (ii) consents electronically, or confirms his or her consent electronically, in a manner that reasonably demonstrates that the consumer can access information in the electronic form that will be used to provide the information that is the subject of the consent; . . .”)

  • Regulation DD, 12 CFR 1030.4(a)(1) (“A depository institution shall provide account disclosures to a consumer before an account is opened or a service is provided, whichever is earlier.”)
  • Regulation CC, 12 CFR 229.17 (“Before opening a new account, a bank shall provide a potential customer with the applicable specific availability policy disclosure described in §229.16.”)
  • Regulation E, 12 CFR 1005.7 (“A financial institution shall make the disclosures required by this section at the time a consumer contracts for an electronic fund transfer service or before the first electronic fund transfer is made involving the consumer’s account.”)
  • Regulation P, 12 CFR 1016.4(f) (“When you are required to deliver an initial privacy notice by this section, you must deliver it according to §1016.9 of this part.”)
  • Regulation P, 12 CFR 1016.9(a) (“You must provide any privacy notices and opt out notices, including short-form initial notices, that this part requires so that each consumer can reasonably be expected to receive actual notice in writing or, if the consumer agrees, electronically.”)