Creditors and Lenders are obliged by regulation to provide very specific information to third parties regarding pre-contractual and contractual terms, termination of credit agreements and debt collection processes. They are also required to keep immutable records of what information has been provided and when.
The question is: how can they prove they complied with their obligation to inform?
Find all the answers in this post and learn why eEvidence’s registered email solutions have been identified by Fintech, Banks and Insurance companies as an effective solution to better protect their business when it comes to comply with industry regulations and avoid fees and sanctions.
What the consumer credit law says
Creditors and lenders are obliged by regulation to provide very specific information to customers at the very first stages of a credit product application, the information to be provided in any durable medium.
In order to be able to prove that they have complied with their obligation to inform, it is mandatory to keep immutable records of what information has been provided and when.
These requirements mostly concern:
- Pre-contractual and contractual terms
- Termination of credit agreements
- Debt collection processes
Failing to comply with the law exposes creditors to penalties and fees, when these can be anticipated and avoided.
Fintech, Banks and Insurance companies tend to rely upon traditional certified letters for delivering important information to consumers, when the easiest and most cost-effective way of getting data to anyone across the world is actually the email.
Today, European Union Directives and United Kingdom Acts regard email as a durable medium, provided that its immutability is granted. The question then is not whether email can be trusted for delivering such information, but whether this can be achieved efficiently and at a reasonable cost.
How registered email can help you secure better compliance
In such a regulated market as the financial market is, it is essential that credit organizations can demonstrate what communications were entered with their customers. In order to do this, organizations use registered email as the most effective solution to securely communicate with third parties as it grants the immutability of the communication.
But what’s a registered email? Is it the equivalent to a registered letter?
What is a registered email
Let’s uncover the mystery. A registered email, also known as certified email, is a type of communication sent by email that provides the sender with an evidence receipt that irrefutably proves the message has been sent and delivered to the recipient/s.
This evidence receipt identifies the sender, the recipient, the content, the documents attached as well as the exact time the email was sent and received by the recipient – your client, supplier, partner, advisor, anyone you sent the email to. The document is often issued as a PDF file, so that it can easily be accessed and read, and is electronically signed and sealed to protect its integrity. No one can deny the evidences provided in it.
In a few words, a registered email is considered the online equivalent to a registered mail or a registered letter as it also brings reliable evidence and probative value to our communications.
Benefits of using registered email
The benefits of using registered email are quite clear. We’ve shortlisted them here:
- Proof of compliance. The main goal of registered email is to secure legal evidence of email communications. By doing so, companies will be able to provide reliable proof of compliance to trade body or to meet government legal needs. Proof that can be accepted as evidence in legal proceedings according to eIDAS Regulation in the European Union or ESSIGN and UETA in the United States.
- Deal better with disputes. Proof of what was communicated between parties can help deal with disputes between organizations and their various stakeholders, including customers, suppliers, investors or the administration. By using registered email, the majority of disputes can be dealt with quickly and effectively to both parties’ satisfaction.
- Scale your processes. If automating and scaling your commercial or debt collection processes is your goal, registered letters – and any other methods from the last century – will be your number-one enemy. Sending registered emails – even at a large scale – is a process that can easily be automated from your email system or business software.
- Cost-efficient. From just a few cents, registered email is by far the lowest-cost method to register your communications. Forget about sending registered letters.
Common use cases in the industry
Registered email is definitely a tool you should be considering if your company has to comply with Consumer Credit Laws and you work in legal, compliance, risk, debt collection or IT.
Registered email will only bring positive results to your company, starting with peace of mind. Besides it can be used almost for any communication you can think of, here’s a list of the situations where registered email is a must-have:
- Compliance with Consumer Credit Regulations
- Providing pre-contractual and contractual terms to customers
- Update / Termination of credit agreements
- Debt collection processes, delinquencies and slow-paying clients
- Financial statements and reports to investors, corporate clients, etc.
- GDPR: proving the company obtained express consent + policy notifications
- Fraud prevention in online contracts (real-time email validation API)
- e-Signature of contracts, agreements or policies (commercial, HR and supply chain)
- Legal operations: legal notices, demands, IP infringement, certified letters, etc.
Now you’ve learnt that registered email can be a good ally for your company, it’s time to take action.
Why you should partner with eEvidence for registering your email communications
We believe everyone in the world should be able to communicate safer. With this vision in mind, we started a journey where we’ve been partnering with companies in different industries and helped them communicate better and safer. And this is exactly what we want for you too.
We are eEvidence, an electronic registered delivery services provider. If you are thinking about adding a registered email solution to your compliance toolkit, we are your best partner. We have the vision, the technology, the team and the expertise in the industry you need.
- Expertise. We help organizations across the globe to better comply with industry regulations. After more than 20 years in the email game, we’ll definitely be able to guide you through successfully deploying registered email technology in your company.
- Fast set-up. Our goal is to have you up and running in the blink of an eye. We’ve worked hard to make our technology very easy to use and to integrate with your systems. We offer you different ways to register your emails as well as as APIs to retrieve in real time the evidence receipts and any stats you may need.
- 100% reliable. Our technology is being used in more than 90 countries and registers +50 million emails per year and growing! We are compliant with the main international regulations like eIDAS, ESSIGN or UETA, so your evidence receipts will be accepted as evidence in legal proceedings and will prove that you delivered the information to the third party when you had to.
- Non-intrusive. eEvidence is the only solution designed to be non-intrusive and protect your brand. To register your emails we don’t need to involve the recipient in the process, which is a big advantage. Only if you want to, we can notify the recipient that the email is being certified by showing an embedded Registered-by notice in the body of the email – which will have a more deterrent effect.