ABA Banking Journal - July/August 2016 - (Page 43) > ABA COMPLIANCE CENTER INBOX Is My E-Sign Workaround Compliant? Q: I have a question about a workaround for providing copies of appraisals electronically. our system is not E-Sign compliant, so we are considering emailing the E-Sign agreement to the consumer with the appraisal attached and requesting a return receipt. If we get the confirmation that the email was received, does this meet the consent requirements of E-Sign? A: No. In order to comply with E-Sign, the consumer must provide demonstrable consent. That means that the consumer must be able to demonstrate to the bank that he or she is able to receive the document in the format provided. A return receipt generated by an email does not meet that definition of proof: it may show that the email was received, but it would not prove that the consumer can open it and read the contents or download an attached document. Basically, you must send a document to the consumer in the format used to provide the appraisal, and the consumer must be able to open it and respond to the bank with a code or word contained in the document that demonstrates that he can open and read the document. Additionally, the E-Sign disclosure must be provided and the demonstrable consent received before any required disclosure is provided. Therefore, attaching a required disclosure to the email with the E-Sign disclosure would not meet the requirement of the E-Sign Act. (Response provided March 2016) Q: My marketing department wants to pull credit reports on our existing consumer customers to see if we want to offer other credit products or services. Is this permissible as long as we only do a "soft" pull rather than a "hard" pull? A: No. The Fair Credit Reporting Act does not differentiate between a hard and soft pull. (The basic differences between hard and soft pull is that only a hard inquiry can negatively affect a consumer's credit score and you do not need a consumer's consent to do a soft pull.) However, pulling consumer reports for marketing purposes is not a permissible purpose, no matter what type of pull it is, unless it is done through a pre-screened list. This is the only permissible marketing route, aba.com/BankingJournal | ABA BANKING JOURNAL 43 http://www.aba.com/BankingJournal Table of Contents for the Digital Edition of ABA Banking Journal - July/August 2016 CHAIRMAN’S VIEW UPFRONT PICTURE THIS LEGAL BRIEFS ECONOMIC OUTLOOK HOW BANK STARTUPS BUILD LEADERS LEADERSHIP LESSONS FROM THE WORST JOB I EVER HAD BREAKING THROUGH $10 BILLION PLATFORMS AND PARTNERS EXCEEDING CUSTOMER EXPECTATIONS STARTS AT THE CORE ALL-AMERICAN BANKER WEALTH MANAGEMENT ABA COMPLIANCE CENTER INBOX MARKETING PAYMENTS BOARD MATTERS LEADING FROM THE STATES CORPORATE SOCIAL RESPONSIBILITY INDEX OF ADVERTISERS ABA Banking Journal - July/August 2016 http://www.nxtbook.com/naylor/BAKS/BAKS0417 http://www.nxtbook.com/naylor/BAKS/BAKS0317 http://www.nxtbook.com/naylor/BAKS/BAKS0217 http://www.nxtbook.com/naylor/BAKS/BAKS0117 http://www.nxtbook.com/naylor/BAKS/BAKS0616 http://www.nxtbook.com/naylor/BAKS/BAKS0516 http://www.nxtbook.com/naylor/BAKS/BAKS0416 http://www.nxtbook.com/naylor/BAKS/BAKS0316 http://www.nxtbook.com/naylor/BAKS/BAKS0216 http://www.nxtbook.com/naylor/BAKS/BAKS0116 http://www.nxtbook.com/naylor/BAKS/BAKS0615 http://www.nxtbook.com/naylor/BAKS/BAKS0515 http://www.nxtbook.com/naylor/BAKS/BAKS0415 http://www.nxtbook.com/naylor/BAKS/BAKS0315 http://www.nxtbookMEDIA.com
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