What does TISA require about "e-signatures" used for disclosures?

The Truth in Savings Act (TISA) mandates that when financial institutions provide disclosures electronically, they must comply with all relevant electronic transaction regulations, which include standards for e-signatures. This compliance ensures that electronic signatures are valid and enforceable in the same manner as traditional signatures.

The law emphasizes the need for consumer consent prior to using e-signatures and requires that institutions have procedures in place that allow consumers to withdraw consent if they choose. Additionally, these practices align with the Electronic Signatures in Global and National Commerce (ESIGN) Act and the Uniform Electronic Transactions Act (UETA), which set the groundwork for the use of e-signatures in various transactions, reinforcing their legitimacy and security.

This requirement does not allow for unrestricted use or absolve institutions from adhering to necessary regulations that protect consumers. As such, financial institutions must ensure their e-signature processes uphold both consumer protection and legal validity.