ESIGN

Question 1

Before a member can give their consent, ESIGN requires the credit union to provide a “clear and conspicuous” statement containing specific disclosures. List three of the disclosures that statement must contain.

Answer 1

The statement that must be provided to the member must contain the following information:
* any right or option the member has to have the record provided or made available on paper or in a nonelectronic form;
* the member’s right to withdraw their consent;
* any conditions, consequences, or fees that would result in the event the member withdrew their consent;
* whether the consent applies only to a particular transaction or to identified categories of records during the lifetime of the member’s account relationship;
* the procedures the member must follow to withdraw consent;
* the information the credit union needs in order to contact the member electronically;
* how the member may request a paper copy of an electronic record after consent to receive them electronically has been given; and
* any a fee that will be charged for receiving a paper copy of a record.

Question 2

If at any time there is a change in the hardware and software requirements for accessing electronic records that may prohibit the member from accessing or retaining an electronic record of the transaction, the credit union is required to
make new disclosures. The new disclosure must contain the new hardware and software requirements and what other piece of information?

Answer 2

A statement of their right to withdraw consent without the imposition of any fees or conditions not originally disclosed.

Question 3

ESIGN’s record keeping provisions lists two requirements for electronic records. One requirement is that the record be accessible by anyone legally entitled to the record in a form that can be accurately reproduced for later reference. What is the other requirement?

Answer 3

That the electronic record accurately reflects the information contained in the contract or other record.

Question 4

ESIGN requires members to provide their consent in a specific manner. How must consent be given and why must it be given in this manner?

Answer 4

Members must provide their consent electronically or confirm their consent electronically to demonstrate their ability to conduct transactions in the required
format.