Electronic signatures—or e-signatures—are everywhere. We click “Agree” or type our name on a device to open bank accounts, purchase vehicles, rent apartments, or accept online terms. Before you sign electronically, here’s what to know.
Are E-Signatures as binding as an actual “Wet Ink” Signature? Not Always!
An e-signature can be as valid as a handwritten one, but only if certain rules are met. Businesses must get your consent to use electronic records. As well, they must prove you can open and read them. Often a test file is sent to the consumer to confirm receipt. The business must also inform the consumer of the following:
1. The option to receive paper copies
2. The option to withdraw consent at anytime, and explain how to do it.
3. Whether consent applies to one deal or all future ones.
4. How to update contact information.
5. The type of device or software is needed to receive communications.
These safeguards exist so that consumers are not tricked into signing documents that may be difficult to see online or save.
What is an “E-Signature”?
The term “e-signature” is more than a digital image of your written signature. The law defines “electronic signature” broadly. It is any sound, symbol, or process used to show intent to sign a document. E-signatures can be:
-
-
- Typing your name at the end of an email
- Clicking an “I agree” button
- Uploading an image of your handwritten signature
- Saying “yes” in a recorded call.
-
The key is intent—you must intend to sign the electronic contract that your signature is applied to. But some companies may forge or copy and paste e-signatures to contracts that were never approved by the consumer. Forging an e-signature is illegal, just like forging a signature in ink on paper.
What “Metadata” Reveals
When you sign electronically, the system stores “metadata”, or hidden information that proves authenticity of the electronic document. Metadata
can show:
- Personal information: name, email or IP address
- Time and place: exact date, time and location when a signature was applied
- Device details: the computer, phone, tablet, or other device used to apply the signature
- Security codes: Digital ID that shows the file was not changed.
Metadata can even show whether a signature was forged—like proving it came from a location you had never been or device you never used.
Are ink signatures on paper documents still required?
While e-signatures are legal on many documents, some notices, such as those listed below, are required to be delivered in paper form and signed in ink. This is to insure that the person is fully informed and in agreement with the document.
-
-
- Car repossession or mortgage foreclosure notices
- Utility, insurance, or benefit cancellations
- Eviction notices
- Lawsuits
- Product recalls or safety warnings
- Documents involving hazardous materials
-
The Bottom Line
Be cautious.
E-signatures are fast and convenient. Used correctly, they are safe and legally binding. However, salespeople are trained to guide consumers in the purchase process and make them feel comfortable to get an e-signature on the documents they need.
Do your due diligence BEFORE e-signing
1) Take time to read all documents that are signed.
2) Get all questions answered.
3) Do not feel pressured to sign.
4) Request a paper copy of all documents showing your e-signature.
5) Maintain a complete file with all documents, handwritten notes, emails, text and phone messages.
Seek help from a qualified consumer law firm
Was your e-signature forged on a document? Were you tricked into an agreement?
Contact us.
Flitter Milz has helped many consumers across the country hold companies accountable for electronic forgery and deceptive practices in the use of
e-signatures.
For a no cost legal evaluation.
Phone: 888-668-1225
Email: consumers@consumerslaw.com
The jury verdict will compensate a group of 19 plaintiffs whose consumer protection rights were violated by repeated misrepresentations throughout FantaSea Resort’s routine, deceptive sales practices. The jury agreed that FantaSea’s tactics left consumers with timeshare purchases they couldn’t use as described, with payments and rising maintenance fees they couldn’t escape.
In trial, FantaSea Resorts admitted to making knowingly false statements to lure potential buyers into binding timeshare sales agreements through a sales process that violated the New Jersey Real Estate Timeshare Act (RETA). According to court documents, FantaSea intentionally withheld important sales documents from the buyers until after they had completed the transaction, contrary to what they are legally required to do.
What’s more, FantaSea’s timeshare sales were rigged so that timeshare owners would routinely pay more for a vacation stay than non-owners, according to court documents. In one case, over the length of the plaintiff’s 10-year mortgage, she would pay more than 
Flitter Milz, PC, with offices in PA, NJ, and NY, is a nationally recognized leader in consumer protection law, with over 30 years’ experience in the field. The firm represents victims of finance fraud, illegal vehicle repossessions, unfair debt collection practices, credit report errors, civil rights abuses, and other consumer protection matters in individual and class action cases. Pictured: Cary Flitter (center), Andy Milz (left), Jody López-Jacobs (right).
