A bill was introduced in the U.S. Senate that would streamline how consumers consent to receive electronic documents such as bank statements, account information, and contracts.
The Electronic Signatures in Global and National Commerce (E-SIGN) Modernization Act would amend the E-SIGN law, which went into effect in 2000. E-SIGN currently requires consumers to reasonably demonstrate that they can access documents electronically before receiving them electronically. The sponsors of this new modernization act say this is an outdated requirement that is no longer necessary given advancements in technology.
Thus, the E-SIGN Modernization Act would remove this requirement, so once a consumer is provided with disclosure information and consents to receive documents electronically, they can obtain them through those means.
“Computers, smartphones, and other devices are more reliable and accessible than ever before,” U.S. Sen. John Thune (R-SD), one of the bill’s sponsors, said. “As technology continues to advance and transform, so too should the laws that govern it. This legislation makes necessary updates to E-SIGN that reflect those advancements in technology, while, at the same time, retaining important protections for consumers that are currently in place.”
Along with Thune, the bill was sponsored by U.S. Sens. Todd Young (R-IN), Marsha Blackburn (R-TN), and Jerry Moran (R-KN).
“It’s time we bring our banking systems to the 21st century by allowing more people to access their bank information from a computer or other electronic device,” Young said. “Our E-SIGN Modernization Act will help Hoosiers easily access their finances electronically as they look for critical documents and bank statements.”
The bill has the support of leading banking and credit union associations, including the American Bankers Association (ABA).
“Now more than ever, consumers want choices that allow them to manage their financial lives using digital banking channels,” Rob Nichols, CEO and president of the ABA, said.
The Independent Community Bankers of America (ICBA) also back the legislation.
“The current policy requiring consumers to ‘reasonably demonstrate’ that they can access information electronically before receiving digital documents is outdated and needlessly impedes important transactions, including home purchases. Under the bill, no further steps are necessary after consumers consent to receiving records and disclosures electronically, which will facilitate transactions to benefit consumers and the economy,” Rebeca Romero Rainey, CEO and president of the ICBA, said.
The Credit Union National Association (CUNA) also supports it.
“This commonsense measure will enhance consumer access to online services and allow credit unions and other financial service providers to expand the means through which they can support consumers’ financial well-being,” Jim Nussle, CEO and president of the CUNA, said.