A deep dive into e-signatures for online accounts

Electronic documents and signatures are almost a mainstay in the financial industry, allowing credit unions to dramatically improve efficiency by reducing costs, saving paper, and expediting the application process. Additionally, consumers have come to enjoy the benefits of being able to easily edit and correct errors, or cut and paste pre-filled information. Before we take that dive, here’s picture of a lovely dolphin that reminds me of my last boat trip in my hometown of sunny Tampa!

Now on to electronic signatures! Congress enacted the Electronic Signatures in Global and National Commerce Act (ESIGN) to accommodate the global transition to electronic transactions, records, and signatures, allowing electronic documents to carry the same legal weight as paper documents. The law went into effect on October 1, 2000 and states that the enforceability of a contract, electronic record, or signature for a transaction cannot be challenged solely because it is electronic. ESIGN also authorizes signatures to be retained in an electronic format so long as it is an accurate reflection of the information in the original document, remains accessible to all persons entitled to access, and is capable of being accurately reproduced.

This Blog will take a deep dive into the application process and discuss the ESIGN implications of electronically signed online account applications. As a threshold matter, ESIGN only applies to information that is legally required to be in writing. Thus, we should first ascertain which applications are legally required to have a signature.

 

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