PAPER Act Protecting Against Paperless and Electronic Requirements Act
Impact
The proposed legislation is expected to have implications for state laws and financial service practices. By mandating that consumers be given the choice of receiving paper statements, the bill is poised to enhance consumer protection against potential privacy risks associated with digital statements. Furthermore, it seeks to uphold the rights of individuals who may lack access to digital technology or prefer traditional paper communications. Therefore, the bill could shift how financial institutions design their communication policies.
Summary
House Bill 6777, titled the 'Protecting Against Paperless and Electronic Requirements Act' (PAPER Act), seeks to safeguard consumers' rights by requiring covered entities, such as depository institutions and credit unions, to provide an option for receiving paper copies of their monthly statements. This legislation directly addresses the growing trend of financial institutions transitioning to digital-only statements, ensuring that consumers are not compelled to forgo paper options entirely.
Contention
There may be potential points of contention surrounding this bill, especially among financial institutions that argue that maintaining paper statement options could increase operational costs and administrative burdens. Proponents of the bill, however, contend that consumer autonomy should be prioritized, enabling individuals to select the mode of correspondence that best suits their needs. The debate could revolve around balancing consumer choice and convenience against the preferences and efficiency concerns of financial entities.