During a recent discussion, Orrick Partner Edward Somers, along with Jerry Buckley and Sherry Safchuk, explored the regulatory frameworks that impact electronic records and signatures within the financial industry. They delved into how laws such as the Uniform Electronic Transactions Act (UETA), the federal E-Sign Act, and state laws are shaping the landscape of electronic transactions. In addition, they touched upon the increased scrutiny from regulators like the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC) on deceptive design practices, known as “dark patterns,” found in websites and mobile apps.
As the conversation progressed, the group emphasized the importance of understanding these regulatory frameworks and how they impact businesses in the origination and servicing of financial products. Companies need to stay abreast of evolving laws and regulations to ensure compliance and maintain consumer trust. Moreover, they discussed potential benefits of utilizing artificial intelligence tools to enhance consumer experiences and improve understanding of financial products and transactions.
The panelists underscored that adapting to changing regulatory environments is crucial for businesses in the financial industry. By staying informed and embracing new technology tools, companies can better navigate complexities related to electronic transactions while delivering enhanced services to their customers.
