Us Congress House Bill HB4538

Us Congress 2025-2026 Regular Session

• Introduced: 7/17/25
• Refer: 7/17/25

Caption

PAPER Act Protecting Against Paperless and Electronic Requirements Act

Impact

If enacted, the PAPER Act would significantly impact state and federal laws regulating the behavior of financial institutions in terms of consumer information delivery. The provision that prohibits these entities from conditioning the use of their services on the acceptance of digital statements ensures that seniors, individuals without access to technology, or those who simply prefer paper documents are not marginalized. This bill encourages transparency and accessibility, as it prevents financial institutions from limiting consumers' options.

Summary

House Bill 4538, known as the Protecting Against Paperless and Electronic Requirements Act (PAPER Act), aims to protect consumers' rights by ensuring that they are not forced to use only digital versions of their monthly statements from covered entities such as depository institutions and credit unions. The bill mandates that these financial entities must provide consumers with the option to receive paper copies of their monthly statements, thus promoting a choice that accommodates people who may prefer physical documentation over digital formats.

Contention

The key points of contention surrounding HB4538 often revolve around the balance between modernizing banking practices and preserving consumer rights. Supporters argue that allowing the choice of paper statements is crucial for certain demographic groups, while opponents may argue that forcing institutions to maintain paper options can result in increased operational costs and inefficiencies for the banking sector. Additionally, there are debates about the environmental implications of paper usage versus digital communication, further complicating the discussions around this bill.