Compliance Q&A: E-Statement Notices

CUs have flexibility in how they deliver disclosures electronically.

October 7, 2010
Q Are credit unions required to send a monthly e-statement notice via e-mail to members who have signed up for home banking?

A No, although many credit unions choose to do so as a member service.

In 2007, the Federal Reserve Board amended Regulations B (Equal Credit Opportunity), E (Electronic Fund Transfers), M (Consumer Leasing), Z (Truth in Lending), and DD (Truth in Savings) to clarify the requirements for providing consumer disclosures in electronic form.

The rules no longer mandate any particular means of electronic delivery of disclosures, such as sending disclosures or notices via e-mail. The Fed changed these requirements because of concerns about data security, identity theft, and "phishing" (using fraudulent e-mail requests to obtain consumers' confidential personal or financial information) that had become more pronounced since the initial rules were published in 2001.

The Fed also eliminated the provisions regarding the retention of electronic disclosures posted on a website for at least 90 days, since most financial institutions retained the information for much longer than that required retention period. So, credit unions have flexibility in how they deliver disclosures electronically, subject to the requirements of the federal e-signature statute.