AUX Blog

Ask Maddaux & Penny: September ’21

September 24, 2021

Ask Maddaux

This month, Penny and Gaye DeCesare, Aux VP of Compliance Services, answer a very common question we get about about e-statements.

September 2021: Ask Maddaux

Q: Can we automatically sign up members for e-statements during the onboarding process for new members?

A: That depends: is the member an individual or a business? If your member is an individual, the answer is no. The Electronic Signatures in Global and National Commerce Act, also known as ESIGN or E-Sign, applies to consumer accounts and requires the credit union not only to obtain permission from the member prior to sending electronic communications, but also for the member to demonstrate they can view these communications on their own device. However, if your member is a business, you are not required to comply with the ESIGN Act. That said, we would not recommend automatically enrolling your business members in electronic communications without at least letting them know you are doing so. This is a good member service practice that will prevent your business members from feeling blindsided and will ensure that those who want paper communications will receive them.

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