Provides Timely Update to Expand and Streamline Consumer Access
Jul 02 2020
WASHINGTON – U.S. Senators Jerry Moran (R-Kan.), John Thune (R-S.D.) and Todd Young (R-Ind.) – members of the Senate Committee on Commerce, Science, and Transportation, which has jurisdiction over technology and consumer protection – today introduced the E-SIGN Modernization Act, legislation that would streamline how consumers consent to receiving electronic documents like bank statements, account information and contracts.
The Electronic Signatures in Global and National Commerce Act (E-SIGN) became law in 2000 and provides a framework for how transactions involved in interstate or foreign commerce can be completed using electronic signatures and electronic documents.
“Given the major advancements in technology and consumer accessibility that have occurred in the past two decades since the E-SIGN Act was first enacted, it’s time to modernize this law,” said Sen. Moran. “This legislation is a timely update to expand consumer access to online and mobile financial services in line with modern practices.”
“As technology continues to advance and transform, so too should the laws that govern it,” said Sen. Thune. “Computers, smart phones, and other devices are more reliable and accessible than ever before. This legislation makes necessary updates to E-SIGN to reflect these advancements in technology and make it easier for consumers to receive documents electronically.”
“During this challenging time, Americans are increasingly faced with outdated barriers to accessing critical documents and bank statements electronically,” said Sen. Young. “The E-SIGN Modernization Act will streamline this decades-old system and allow more people to access their bank information from a computer or other electronic device.”
E-SIGN currently requires consumers to reasonably demonstrate that they can access documents electronically before they can receive an electronic version, which is an outdated requirement that is no longer necessary given advancements in technology. The E-SIGN Modernization Act would remove this requirement, so once a consumer is provided with disclosure information and consents to receiving documents electronically, he or she can obtain them through those means.