Topic: Electronic Signatures in Global and National Commerce Act (ESIGN)
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We are offering a new savings account where we disclose that we will automatically send electronic account statements unless the customer opts to pay a small fee for paper statements. Some customers have indicated that they don’t want either electronic or paper statements. Can we honor that request? The savings accounts can receive electronic funds transfers.
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No, we do not believe that it would be appropriate to honor a customer’s request to not send statements for a deposit account, due to federal and state laws pertaining to electronic fund transfers, as well as checks. For any account that allows electronic fund transfer (EFT) activity, Regulation E requires monthly periodic statements for…
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Can we accept scanned copies of signature cards for our checking and savings accounts, in lieu of the original? For some of our customers, we email our signature card agreement, which the customer signs, scans, and emails back to the bank.
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Disclaimer: The Electronic Commerce Security Act (ECSA) was repealed and replaced with the Uniform Electronic Transaction Act (UETA), effective June 25, 2021. Please note that this change may affect the continued accuracy of this guidance as it pertains to the ECSA. Yes, your bank may accept electronically signed or scanned signature cards. Both Illinois and federal…
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A customer deposited a check for over one million dollars and requested the check back after it clears so he can frame it. Can we give him the check? Should we stamp it “paid”?
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Disclaimer: The Electronic Commerce Security Act (ECSA) was repealed and replaced with the Uniform Electronic Transaction Act (UETA), effective June 25, 2021. Please note that this change may affect the continued accuracy of this guidance as it pertains to the ECSA. Yes, you may return the paper check to the customer, provided that you retain a…
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We image our checks and retain them for at least seven years. Are we required to retain paper versions of those checks, and for how long? We use an image replacement document (IRD) printer for our check returns.
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Disclaimer: The Electronic Commerce Security Act (ECSA) was repealed and replaced with the Uniform Electronic Transaction Act (UETA), effective June 25, 2021. Please note that this change may affect the continued accuracy of this guidance as it pertains to the ECSA. We are not aware of any required retention period for paper copies of checks, given…
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We are converting to a paperless document imaging system for our deposit accounts with the goal of storing all of our documents electronically, including signature cards. Do we need to retain original signature cards that were signed in person?
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Disclaimer: The Electronic Commerce Security Act (ECSA) was repealed and replaced with the Uniform Electronic Transaction Act (UETA), effective June 25, 2021. Please note that this change may affect the continued accuracy of this guidance as it pertains to the ECSA. No, your bank is not required to retain paper copies of executed signature cards. Both…
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We are moving to an electronic imaging system for our files, and we plan to shred most of our paper files after scanning them, reviewing to ensure that all pages were scanned, that they are legible, etc. Are there any documents that we should retain in paper form?
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Disclaimer: The Electronic Commerce Security Act (ECSA) was repealed and replaced with the Uniform Electronic Transaction Act (UETA), effective June 25, 2021. Please note that this change may affect the continued accuracy of this guidance as it pertains to the ECSA. Generally you do not need to retain hard copies of documents, but heightened requirements do…
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If a business or consumer customer has signed up for online and/or mobile banking, and we are sending a communication regarding the online or mobile banking platform, would that communication require us to obtain affirmative consent in order to send it electronically under the E-SIGN Act?
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Disclaimer: The Electronic Commerce Security Act (ECSA) was repealed and replaced with the Uniform Electronic Transaction Act (UETA), effective June 25, 2021. Please note that this change may affect the continued accuracy of this guidance as it pertains to the ECSA. No, we do not believe that the E-SIGN Act requires you to obtain affirmative consent…
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How long should we keep mail returned as undeliverable, such as privacy notices and bank statements?
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Disclaimer: The Electronic Commerce Security Act (ECSA) was repealed and replaced with the Uniform Electronic Transaction Act (UETA), effective June 25, 2021. Please note that this change may affect the continued accuracy of this guidance as it pertains to the ECSA. We are unaware of any recordkeeping requirements for mail that has been sent to customers…
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Can we email teller receipts to our customers? What information should we include in the receipts?
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Yes, we believe that your bank may provide electronic receipts for teller transactions, without needing to meet the disclosure and consent requirements in the federal E-Sign Act. We are not aware of any federal or Illinois law that requires financial institutions to issue receipts for basic teller transactions, such as deposits and withdrawals (in fact,…
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We are planning to distribute new, chip-enabled debit cards to all of our customers. We would like to send a mass email to customers who have provided their email addresses notifying them that they need to verify their mailing addresses to avoid delay. Would sending this email violate any regulations?
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We do not believe that an email requesting verification of customers' mailing addresses would violate any laws or regulations, provided that the email does not require customers to verify their mailing addresses as a precondition for receiving a new debit card. The E-SIGN Act requires you to make certain disclosures along with obtaining the recipient's…