Paperless Office: Automotive Industry Taking Lead

Paperless processes are increasingly being adopted by the automotive finance industry in both eContracting and Remarketing applications. eContracting provides great benefits to everyone involved: dealers can receive funding as fast as the same day, lenders can process twice as much work in comparison to a paper process1, and customers benefit from more efficient and secure transactions.

Remarketing pertains to the re-sale of end-of-lease vehicles. When a leased vehicle is returned to the dealership for lease termination, it has to be inspected and processed for remarketing purposes. The paperwork is time consuming and expensive, so electronic signature solutions are welcomed as an ideal way to generate reductions in cost and processing time.

Here are some key facts regarding the use of esignature technology in the Automotive Industry:

• eContracting can eliminate up to 25 days from a traditional paper process.
• Lenders can process twice as much work with an e-process.[1]
• As of 2008, nearly half a million electronic contracts have been processes through DealerTrack.[2]
• Experts predict that within five years, nearly all contracts will be e-contracts.[3]

[1] http://www.autodealerinstitute.com/news/e-contracting-benefits-for-customers-and-lenders.html
[2] 2008_DealerTrack_eCon.pdf
[3] http://www.autodealerinstitute.com/news/e-contracting-benefits-for-customers-and-lenders.html

Admissibility of e-evidence

When deployed properly, an electronic signatures solution can reduce risk compared to wet ink in paper and be enforced in a court of law.

The admissibility of esignatures starts with ESIGN. ESIGN states that an electronic signature may be as legally effective as a traditional pen on paper signature and cannot be dismissed solely because the signature is electronic. Evidence of an individual(s) intent to sign is critical. Admissibility and enforceability starts with consent.

When signing via an electronic signature, all documents must be presented and signed in the correct order – the specific act of signing.

All electronic records must be archived (accurately) and retrievable (to anyone who is entitled to them). Without this, enforceability is compromised.

Proven authentication is a condition to admissibility.
An audit trail is required to capture and detail authentication, consent, document presentation, document signing, and archiving.

While there are still unknowns when it comes to esignatures, this shouldn’t deter an organization from implementing an esignature solution. In fact, organizations are protected by ESIGN and federal rules of evidence that are suited for electronic signatures, sections and rules:

• 901(b)(1), (3), (4), (9)
• 902(7), (11)
  

For more information about esignatures and admissibility, please visit LLB&L.

What does eSign AnywhereTM mean?

eSign Anywhere is Interlink Electronics powerful esignature platform that offers individuals the security and flexibility of signing important documents electronically. Developed from the strengths of the ePad™ Family of signature capture devices, eSign Anywhere redefines what it means to put pen to paper. Comprehensive desktop and server-based esignature solutions provide tremendous benefits of legally-binding handwritten and click-through esignatures, robust security, as well as mobile options. Be safe, save time, and go green while esigning anywhere.

What is an electronic signature?

Traditionally, we sign paper documents to ceremonially indicate consent, indicate the “who, why, and when” surrounding a written transaction or agreement, or execute a legally binding contract. As these activities become electronic, the procedure for“signing” them must naturally become electronic as well.

An “electronic signature” under UETA (Uniform Electronic Transaction Act) and ESIGN (Electronic Signatures in Global and National Commerce Act) is an “electronic sound, symbol, or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record.” (UETA § 2[8]; ESIGN § 106). Included within this definition are traditional ink signatures, typed names, or a click-through on a software program’s dialog box combined with some other identification process, including biometric measurements (such as a retinal scan or thumbprint), a digitized picture of a handwritten signature, or a complex, encrypted authentication system.

Learn more about electronic signatures here.

What is a Signing Ceremony?

Historically, a signing ceremony is when a bill passed by a governing body and signed into law. In the United States, it’s not uncommon to have those in Congress who helped craft the bill be present for the signing ceremony. In some cases, those who participate in a signing ceremony are given their own pen to use.

What Interlink has done is taken the foundation of what is a signing ceremony and applied it to the online space.

No more sifting through and organizing, verifying, storing and retrieving documents. These tasks are neither fun nor easy. It takes time and energy. Interlink’s IntegriSign Emcee removes the chaos from ceremonies.

So what’s an online/electronic Signing Ceremony?

First, a Signing Ceremony is more than applying your signature or clicking “I ACCEPT” in a document. A Signing Ceremony enables organizations of any size to design the signing process from beginning to end. This includes:

• Selecting the documents to be reviewed and signed
• Establishing the correct document presentation order
• Authenticating the signers
• Capturing intent
• Binding signers to documents
• Producing audit trail with validated time-stamps for each action

From a legal standpoint, a well executed Signing Ceremony is irrefutable – this protects the organization and eliminates any confusion of who signed what and when.

Plus, with IntegriSign Emcee, Signers select their own pen for the Signing Ceremony; either via Click-through, electronic signing pad or touch-screen smartphone. And, depending on what’s being signed, any given combination of pen/signing devices can be used on the same document.