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The general requirements and controls that apply to paper-based transactions also apply to electronic financial services. Consumer financial services regulations generally require that institutions send, provide, or deliver disclosures to consumers as opposed to merely making the disclosures available. Financial institutions are permitted to provide such disclosures electronically if they obtain consumers' consent in a manner consistent with the requirements of the federal Electronic Signatures in Global and National Commerce Act (the E-Sign Act). The Federal Reserve Board has issued interim rules providing guidance on how the E-Sign Act applies to the consumer financial services and fair lending laws and regulations administered by the Board.66 Federal Register 17,779 (April 4, 2001) (Regulation B, Equal Credit Opportunity); 66 Federal Register 17.786 (April 4, 2001) (Regulation E, Electronic Fund Transfers); 66 Federal Register. 17,795 (April 4, 2001) (Regulation DD, Truth in Savings); 66 Federal Register 17,322 (March 30, 2001) (Regulation M, Consumer Leasing); 66 Federal Register 17,329 (March 30, 2001) (Regulation Z, Truth in Lending). However mandatory compliance with the interim rules was not required at the time of this booklet's publication.66 Federal Register 41,439 (August 8, 2001) (lifting mandatory compliance date). Financial institutions may provide electronic disclosures under their existing policies or practices, or may follow the interim rules, until the Board issues permanent rules.
When disclosures are required to be in writing, the E-Sign Act requires that financial institutions generally must obtain a consumer's affirmative consent to provide disclosures electronically. Under the E-Sign Act, a consumer must among other things provide such consent electronically and in a manner that reasonably demonstrates that he or she can access the electronic record in the format used by the institution. In addition, the institution must advise customers of their right to withdraw their consent for electronic disclosures and explain any conditions, consequences, or fees triggered by withdrawing such consent.
Additional information on consumer regulatory requirements can be found in this booklet's "Compliance/Legal Risk" section and on each agency's website.