2020Directory_FNL_FlippingBook

documents and signatures are as valid as paper ones. Both acts provide that electronic records and signatures have the same legal status as ink signatures and paper records. Under both, an “electronic record” is information “that is stored in an electronic or other medium and is retrievable in perceivable form” and an “electronic signature” is “an electronic sound, symbol, or process, attached to or logically associated with a contract or other record and executed or adopted by a person with the intent to sign the record.” Neither act changes the disclosure or content requirements for documents under other law.The E-SIGN Act requires that consumers specifically consent to receiving disclosures that are required to be “in writing” electronically and provides specific requirements for obtaining such consent. Alternatively, one can provide such disclosures in paper form and avoid the consent procedure imposed by the E-SIGN Act. Please note that because of limitations in their scope, the E-SIGN Act and UETA do not alter the documentation and signature requirements of Uniform Commercial Code Article 9, which provides the requirements for the customer to grant the creditor a security interest in the vehicle sold. Fortunately, Article 9 permits the use of electronic records and signatures to grant a security interest in substantially the same way as the E-SIGN Act and UETA would. So, the electronic records and signatures used in the customer’s financing contract that satisfy the E-SIGN Act and UETA requirements will also satisfy the Article 9 requirements for the contract. As a result, a consumer’s digital signature on an electronic signature pad linked to an electronic document or their digital signature on a tablet used to provide the documents has the same legal effect as their ink signature on a paper document. A click-through to a website can also be an electronic signature. The electronic document can be stored in an electronic filing cabinet or vault and should be retained for a period of time equal to the retention period for a paper version of the same document. Under TILA, the consumer must receive a copy of the disclosures that the consumer can keep prior to the consummation of the transaction. See more in Topic 11: Recordkeeping and Destruction of Records. The UETA was not adopted in Illinois, New York and Washington. We recommend reviewing state law in these states for any additional requirements concerning the use of electronic signatures. Service members Civil Relief Act (SCRA) Formerly called the Soldiers and Sailors Civil Relief Act, this law imposes a 6-percent rate cap on pre-existing secured credit, including vehicle credit sale or a loan, during the period of military service. These provisions apply to both the person in military service and their dependents with respect to obligations entered into by such persons before the service member was called to active duty status. The SCRA also allows service members to terminate pre-service automobile leases if they are called for military service of 180 days or longer. Service members who sign automobile leases while on active duty may be able to terminate an automobile lease and receive a refund of any lease amounts paid in advance if they are given orders for a permanent change of station outside the continental United States or to deploy with a military unit for a period of 180 days or longer. A large auto lessor agreed to pay millions to settle a SCRA claim with the Department of Justice (DOJ) related to DOJ charges that the lessor failed to properly refund lease amounts paid in advance consisting of a pro rata portion of the lessee’s capitalized cost reduction (minus manufacturer rebates or similar incentives, the payoff of negative equity or prior lease balances, payments for vehicle maintenance and other ancillary products, the amount of any acquisition fee, and any amounts paid for tax, title, and license).

2020 MEMBERSHIP DIRECTORY & SERVICES GUIDE HOT TOPICS

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