Overview

Title

To prohibit covered entities from requiring consumers to solely use digital monthly statements, and for other purposes.

ELI5 AI

The PAPER Act is a bill that wants to let people choose whether they get their bank or credit union statements printed on paper or just sent online. This means banks and credit unions can't make you go digital if you still want paper statements.

Summary AI

H.R. 6777, referred to as the "Protecting Against Paperless and Electronic Requirements Act" or the "PAPER Act," aims to ensure that consumers have the choice to receive paper copies of their monthly statements instead of being forced to accept only digital versions. The bill prohibits depository institutions and credit unions from requiring consumers to solely use electronic statements and ensures that these entities cannot make their services conditional upon the exclusive use of digital monthly statements.

Published

2023-12-13
Congress: 118
Session: 1
Chamber: HOUSE
Status: Introduced in House
Date: 2023-12-13
Package ID: BILLS-118hr6777ih

Keywords AI

paper act digital monthly statements paper statements consumer choice financial institutions enforcement mechanisms depository institutions credit unions compliance penalties service conditionality

Sources

Bill Statistics

Size

Sections:
2
Words:
278
Pages:
2
Sentences:
17

Language

Nouns: 89
Verbs: 27
Adjectives: 15
Adverbs: 2
Numbers: 10
Entities: 26

Complexity

Average Token Length:
4.34
Average Sentence Length:
16.35
Token Entropy:
4.54
Readability (ARI):
10.52

AnalysisAI

General Summary of the Bill

The bill titled "Protecting Against Paperless and Electronic Requirements Act," also known as the "PAPER Act," was introduced in the House of Representatives on December 13, 2023. The primary aim of this legislation is to ensure that consumers have the option to receive paper copies of their monthly statements from financial institutions, which include depository institutions like banks and credit unions. It specifically prohibits these institutions from requiring consumers to accept only digital statements as a condition for using their services.

Summary of Significant Issues

This bill, while significant in its consumer protection aims, raises several critical issues:

  1. Enforcement Mechanisms: The bill does not specify enforcement methods or penalties for non-compliance by financial institutions. This omission could result in weak implementation of the law, reducing its effectiveness in protecting consumer rights.

  2. Logistical Concerns: Financial institutions that have invested significantly in digital infrastructure may encounter logistical challenges when required to provide paper statements. This transition could present operational burdens, affecting how financial institutions manage their resources.

  3. Potential Fees for Paper Statements: The bill does not address whether institutions can charge fees for providing paper statements. Introducing such fees could discourage consumers from opting for paper statements, undermining the bill’s purpose of access and choice.

  4. Broad Definition of 'Consumer': The term "consumer" is not clearly defined, which may create ambiguity regarding who is eligible to request paper statements. More precise definitions may be needed to ensure comprehensive protection across all applicable contexts within financial institutions.

Impact on the Public

The proposed bill seeks to safeguard consumer preferences and rights by allowing the continued option of receiving paper statements. This option is particularly important for individuals without internet access or those who prefer physical documents for record-keeping. The bill could have a positive impact broadly by maintaining inclusivity in financial communications and supporting consumer choice.

However, the absence of enforcement guidelines may result in inconsistencies in how this option is presented or managed by different institutions, potentially diminishing consumer trust and protection. Clarifying these aspects will be crucial for realizing the bill's intended public benefits.

Impact on Specific Stakeholders

Consumers: The primary beneficiaries are consumers, especially those less tech-savvy or those without reliable internet access. This demographic includes older adults and individuals in rural areas. The bill ensures they are not left behind in an increasingly digital world. However, if fees for paper statements are allowed, this could negate the benefits for low-income consumers seeking cost-free access to their financial statements.

Financial Institutions: Banks and credit unions might face operational challenges and additional costs associated with offering paper statements. If such challenges are significant, financial institutions could lobby for adjustments to the bill or seek ways to minimize costs, potentially through additional charges for paper statements.

Regulatory Bodies and Lawmakers: They may need to step in to address the enforcement vacuum and ensure compliance, presenting a regulatory challenge that requires pragmatic solutions to balance consumer protection with the operational capabilities of financial institutions.

Overall, while the PAPER Act aims to expand consumer rights and inclusivity, careful consideration of its implementation and compliance mechanisms will be essential for it to achieve its goals without unintended negative consequences for consumers and financial institutions.

Issues

  • The bill does not specify enforcement mechanisms or penalties for covered entities that fail to comply with the requirement to offer paper statements (Section 2). This lack of enforcement provisions might weaken the efficacy of the law.

  • There could be potential resistance or logistical issues from covered entities due to the financial and operational burden of providing paper statements alongside digital ones, especially for entities that have invested heavily in digital infrastructure (Section 2).

  • The bill does not address whether covered entities can impose additional fees on consumers who opt for paper statements. Allowing such fees could undermine the bill's intent to ensure accessibility to paper statements (Section 2).

  • The definition of 'consumer' is broad and lacking clarity. Further specification may be necessary to ensure that all appropriate individuals within the context of a depository institution or credit union are covered (Section 2).

Sections

Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.

1. Short title Read Opens in new tab

Summary AI

The first section of this Act states its official title, which can be referred to as the "Protecting Against Paperless and Electronic Requirements Act" or simply the "PAPER Act."

2. Requirement Read Opens in new tab

Summary AI

Each financial institution, like a bank or credit union, must give customers the choice to receive paper statements instead of just digital ones. They cannot make using their services dependent on only accepting digital statements.