Protecting Against Paperless and Electronic Requirements Act; PAPER Act
Summary
The Protecting Against Paperless and Electronic Requirements Act (PAPER Act) aims to prevent covered entities (depository institutions and credit unions) from mandating that consumers solely use digital monthly statements. It ensures consumers retain the option to receive paper copies of their statements. The bill seeks to provide consumers with choice and prevent potential disadvantages for those who may not have reliable access to digital services or prefer paper records.
Expected Effects
This bill will require covered entities to offer paper statement options. It prohibits them from making digital statements the only option. Consumers will have the right to choose how they receive their monthly statements.
Potential Benefits
- Ensures consumers have a choice in receiving paper statements.
- Protects individuals without reliable digital access.
- Prevents potential discrimination against those who prefer paper records.
- May reduce confusion or errors for some consumers who find paper statements easier to understand.
- Potentially increases accessibility for individuals with disabilities.
Most Benefited Areas:
Potential Disadvantages
- May increase operational costs for covered entities.
- Could lead to higher fees for consumers if institutions pass on costs.
- May increase paper consumption, potentially impacting the environment.
- Could slow down the transition to more efficient digital systems.
- Might create unnecessary regulatory burden on financial institutions.
Most Disadvantaged Areas:
Constitutional Alignment
The bill aligns with the spirit of ensuring individual choice and preventing undue burdens on citizens. While there's no specific constitutional clause directly addressing paper statements, the concept of protecting individual rights and preventing discrimination can be linked to the broader principles of liberty and equal protection. The bill does not infringe upon any specific constitutional provision and appears to fall within the legislative powers granted to Congress under Article I, Section 8, which allows Congress to regulate commerce and establish uniform rules regarding financial matters.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).