Questions and Answers

Section 36 of Regulation Z (12 CFR 226.36) spells out the requirements for making disclosures in electronic form. Section 36 tracks the requirements of the Electronic Signatures in Global and National Commerce Act (the E-Sign Act) (15 U.S.C. 7001 et seq.). Basically, the E-Sign Act and Regulation Z require you to obtain the consumer’s consent to receive the disclosures in electronic form if the disclosures relate to a specific transaction.  

You should be aware, however, that the Federal Reserve Board has recently finalized amendments to these rules. The amendments have a mandatory compliance date of October 1, 2008, but compliance is optional before that. The effect of the amendments is to remove from the Regulation overly burdensome provisions and others that duplicate the provisions of the E-Sign Act. The amendments also permit creditors to supply electronic disclosures where the consumer has accessed an electronic application for a credit or charge card, a home equity plan, or an ARM subject to early disclosures. And they allow creditors who are providing electronic notice of the right to rescind to provide only one copy, instead of the usual two copies, per consumer.