E-SIGN

If a customer is in the branch and agrees to receive bank statements electronically can the bank start sending out electronic statements?

no because the customer has not reasonably demonstrated that they can access information electronically *in order for the customer to demonstrate access it on their own

Can a consumer confirm consent to E-SIGN in writing?

no, consumers can only confirm consent electronically

Are institutions required to offer paper copies for all products and services?

no, however they must inform consumers of the consequences of withdrawing consent for electronic delivery

once a consumer consents to receive documents electronically, is the institution required to send a sample document to verify that the consumer can read it?

no, the bank only has to confirm that the consumer has the ability to access information in electronic form

To be valid and enforceable, electronic signatures, contracts, and records must meet which of the following criteria: (select all that apply) a. consumers must consent to electronic delivery b. consumers must pay a convenience fee for electronic delivery c. consumers must receive a discount for opting for electronic delivery d. consumers must demonstrate the ability to access documents electronically

A and D

Examiners must determine that the consumer, prior to consenting, is provided with a statement of the ___________ and ____________ requirements for access to and retention of electronic records.

Determine that the consumer, prior to consenting, is provided with a statement of the hardware and software requirements for access to and retention of electronic records.

what does E-SIGN stand for?

Electronic Signatures and Global and National Commerce Act

True or False: Under the E-SIGN Act, institutions must meet compressed delivery timelines when disclosures are delivered electronically.

False, banks providing notifications electronically must meet the same timing requirements specified for written notifications

True or False: Under the E-SIGN Act, it is unlawful to provide required written disclosures by electronic communication

False, under the E-SIGN Act, a bank may provide any disclosures by electronic communication

What is the purpose of the E-SIGN Act?

-establishes the legitimacy of electronic documents and signatures in interstate or foreign commerce -makes electronic documents acceptable if the consumer has affirmatively consented

what information must be on the E-SIGN disclosure?

1. any right or option to have the record provided in paper format 2. whether the consent applies to one record or ongoing records 3. The procedures the consumer must use to withdraw consent 4. informing the consumer on how to request a paper copy of a record and if any fees are applicable upon request 5. procedures for updating the consumer's contact info 6. hardware/software requirements

What are the record retention requirements?

Banks must maintain each disclosure agreement and each individual electronic record and that they remain accessible to the consumer For example: if a consumer agreed to get periodic statements electronically, then the bank must give them access to look at all of their electronic bank statements

Which of the following is not an acceptable method for confirming consent to E-SIGN? a. reviewing and accepting E-SIGN consent through a web page b. retrieving and submitting a code contained in a PDF document c. signing an electronic consent form at a local branch d. following instructions in an email to log in and provide consent to obtain electronic documents

C. Consumers who sign a consent form at a branch will need to reconfirm consent from home.

What if the consumer uses electronic means to open an account or request a service? When should the bank deliver the disclosures?

If the consumer uses electronic means to open an account or request a service, the disclosures must be provided before the account is opened or the service is requested. In response to a consumer request, disclosures should be made available in a reasonable amount of time and may be electronic if the consumer agrees.

when was E-SIGN passed into law? and effective?

June 30, 2000 signed into law effective October 1, 2000

The E-Sign Act grandfathers existing agreements between a consumer and an institution to deliver information electronically. However, agreements made on or after ___________ ___ ________, are subject to the requirements of the E-Sign Act.

October 1, 2000

Rick Barnes consented to receive his initial disclosures electronically. Is additional consent required if Bayview Financial plans to send additional disclosures over the course of the relationship?

Yes, additional consent is required if the consent relates only to a particular transaction

Can a bank send an adverse action notice electronically?

Yes, as long as the bank received consent from the applicant

Which of the following consequences are permissible when a consumer withdraws consent to receive account information electronically? (select all that apply) a. loss of preferred pricing b. additional fees c. transition to a new account type d. termination of the relationship

all of these actions are permissible when a consumer withdraws consent *but the bank must explain the consequences in the disclosure

Prior to obtaining their consent, financial institutions must provide the consumer, a ______ _____ ____________ statement informing the consumer in a disclosure

clear and conspicuous

Whether the consumer consents electronically, or confirms his or her consent electronically, it must be in a manner that reasonably _______________ the consumer can access information in the electronic form that will be used to provide the information that is the subject of the consent

demonstrates

Lakewood Financial rejects a loan application because the consumer declines to receive electronic statements. Is this a violation of the E-SIGN Act?

yes institutions cannot require consumers to use electronic records *contradicting*

Does Reg Z, Reg B, Reg E, Reg C, and Reg M concern the E-SIGN Act?

yes because all of these regulations involve providing disclosures to consumers, and thus all of these regs concern the E-SIGN Act

Do banks need to notify customers every time there is a change in hardware and software requirements?

yes if it creates a material risk that the consumer will not be able to access or retain the electronic information

Jimmy Chu, who previously opted for electronic statements, requests to be switched to paper statements. Can his bank charge a fee for the paper statements?

yes; banks are allowed to charge a reasonable fee for providing written disclosures/statements