NCUA sets e-statement, disclosure rules

In April 2000, the NCUA allowed credit unions to provide electronic statements instead of mailed statements, at the members’ option. That rule, following the lead of the Federal Reserve Board, was amended by the NCUA Board on June 14. It now reads: Standards set for electronic Truth in Savings disclosures The NCUA Board adopted an interim final rule, with a 60-day request for comments, that establishes uniform standards for the electronic delivery of disclosures required by the Truth in Savings Act (TISA) and amended its regulations to address electronic advertisements. The amendments are effective immediately upon publication in the Federal Register. The amendments conform to the Electronic Signatures in Global and National Commerce Act (E-Sign Act) and are substantially similar to recent Federal Reserve Board amendments to Regulation DD. Among the amendments to Part 707 are – *Electronic disclosures may be provided to members or potential members with their consent. *Electronic disclosures may be sent to an e-mail address designated by the member or posted elsewhere, such as the credit union’s web site, provided the credit union sends an e-mail alerting the member where the disclosure is posted. *Disclosures posted on a Web site must be available for at least 90 days. *If a member is not at the credit union when an account is opened, the credit union must provide the related disclosures within 10 business days after opening the account. If the account is opened by electronic communication, the credit union must provide the disclosures before the account can be opened. *Credit unions must take reasonable steps to redeliver undelivered electronic disclosures using the address information in its files. Electronic communication is defined as a message transmitted electronically between a credit union and a member in a format that allows visual text to be displayed on equipment, for example, a personal computer monitor. Credit unions must provide electronic disclosures in a clear conspicuous format in accordance with the E-Sign Act and must meet existing timing requirements under the TISA and NCUA’s Part 707.