E-SIGN may be back in style, but these 3 common mistakes aren’t

by: Shelbey

Like any trend, it sometimes seems like the focus on certain regulations comes and goes. In a world that increasingly relies on electronic devices, the Electronic Signatures in Global and National Commerce Act (which was implemented in 2000) seems to suddenly be in vogue. We’ve reviewed many institutions for E-SIGN compliance and have put together the following outline of three common issues and our recommended solutions.

Issue #1: Many institutions mistakenly believe they are exempt from E-SIGN requirements, because they do not require electronic signatures online.

However, most institutions do provide their disclosures or other forms in an electronic format, and this action falls under the provisions of the E-SIGN Act.

Every institution has consumers who are pushing for faster processes and a reduction of transactions or disclosures in physical paper, and almost all institutions comply with this request in some manner. So if you think E-SIGN is old news or isn’t applicable to your institution, think again.

To solve this issue, your compliance officer should review all disclosures, forms, applications, and documents. If any are provided electronically (such as via email), you need to enforce E-SIGN compliance, specifically the section about disclosures.

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