Most likely, you are scratching your head and wondering how the ability to email and text is going to help you communicate with the consumer when the rules around those communication methods are very unclear, all the while email and text will be a cost saving worth exploring… We feel your pain.
With great effort and substantial help from our guest author, Joann Needleman of Clark Hill, we hope to break it down into understandable tasks that should be easy to set up and follow for your compliance program.
A series of Compliance Conversation articles will dissect the mysteries around electronic communications. Today’s article will address E-Sign disclosures. Subsequent articles will look at how you can deliver E-Sign disclosures and how to manage electronic communication consent.
Part 1 – Required E-Sign Disclosures
Let’s look at the required disclosures under the E-Sign Act. If you want to accept a consumers signature electronically for a legal document, you must advise the consumer of the following:
1. The consumer’s right not to consent and to withdraw consent;
2. The scope of the consumer’s consent, including whether it applies only to the particular transaction which gave rise to the obligation to provide the disclosure or to identified disclosures that may be provided or made available during the course of the parties’ relationship;
3. The procedures for withdrawing consent;
4. How the consumer may obtain paper copies of electronic records; and
5. Any hardware and software requirements for access to and retention of electronic records.
These elements are required disclosures in order to obtain the consumer’s consent and to be in compliance with the E-Sign Act. Without these disclosures, you may have consent; but not the consent required to deliver the statutorily required notifications under the Fair Debt Collections Practice Act (FDCPA): 1) Validation Notice, 2) Original Creditor Disclosure, 3) Notice of Dispute Rights.
Remember these five points to advise a consumer.
We recommend consulting with your own attorneys before you issue these disclosures to consumers. Having said that, we thought some sample content containing the required language could help get you started.
Request your copy of the Federal E-Sign Act Disclosure and Consent Sample and subscribe for upcoming articles about the CFPB Notice of Proposed Rule as it unfolds.
Stay tuned for the next article: Sending the E-Sign Disclosures
After learning what the required disclosure looks like, we can explore how the DAKCS Software System can help you send the disclosure and obtain consent.
To stay in the compliance forefront, get the latest information today.
Past articles include:
- DAKCS Difference in Action: Partnering on Washington State Interest Change
- Getting an ROI from the Limited Content Message
- Navigating the Safe Harbors of the NPR
- Is the CFPB’s Proposed Validation End Date a Wolf in Sheep’s Clothing?
- 5 New Data Points of the Validation Notice Under the Proposed Rule