I am working to develop an online credit application and have hit a stumbling block. We send a lot of accounts to third-party collections and eventually to court/litigation. Our current app provides a physical signature for both the terms and conditions and the personal guaranty. With the online credit application, how do we validate that the Terms and Conditions and the Personal Guaranty were signed by a specific individual and what do we need to provide third parties to legitimize the application and the electronic signature?
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I haven't crossed the bridge into customer online submission of applications (we do accept print-complete- scan-and-attach-to-email and faxed application copies). From a not-there-yet perspective, my understanding of when we do it has to be a digital signature method/requirements set forth in the federal electronic records law. Ha, you probably need a lawyer
Consult your attorney, of course, but the federal electronic records retention act covers the saving of such records in electronic form. We have done that for some time now, although, still, just in case, we still keep the original. We're not building new credit paper files by account, but are putting them into a chronological paper file after scanning and creating an electronic credit file
Here is a useful resource you may want to consider for those electronic signatures:
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https://rightsignature.com/ They have several signing methods and the tracking details are easily accessible should the signature become an issue for court. This resource has been used by attorneys and bankers for legal documents.