PAPER Act

Bill Number

H.R. 4538

Origin Chamber

House

Congress

119th Congress, Session 1

Status

Introduced

Latest Action

2025-07-17: Referred to the House Committee on Financial Services.

Last Updated

2025-07-30T12:38:27Z

AI-Generated Summary

Purpose

The Protecting Against Paperless and Electronic Requirements Act (PAPER Act) aims to protect consumers by ensuring financial institutions cannot force them to receive monthly statements only in digital format. It guarantees the right to choose paper statements, promoting accessibility for those who may not use or prefer digital options.

Key Provisions

• Option for Paper Statements: Covered entities must provide consumers with the choice to receive physical paper copies of their monthly statements.
• Prohibition on Conditioning Services: Financial institutions cannot require exclusive use of digital statements as a condition for accessing any of their services, such as account maintenance or loans.
• Definitions:
• Depository institution: A bank or similar entity insured by the federal government (as defined in the Federal Deposit Insurance Act, which protects deposits up to a certain amount).
• Credit union: A member-owned, not-for-profit financial cooperative (as defined in the Federal Credit Union Act).
• Covered entity: Any depository institution or credit union.

Significant Changes to Existing Law

This bill introduces a new federal mandate requiring banks and credit unions to offer paper statements without restrictions. Prior to this, institutions could often default to or encourage digital-only delivery to reduce costs, with limited consumer protections against such practices under existing laws like the Electronic Signatures in Global and National Commerce Act (E-SIGN), which generally favors electronic records but allows for paper options in certain cases. This act strengthens consumer choice by explicitly banning mandatory digital exclusivity for monthly statements.

Potential Impacts

• On Citizens: Empowers consumers, particularly older adults, low-income individuals, or those without reliable internet access, by preserving access to traditional paper statements and preventing service denials based on format preferences. It may reduce barriers for non-digital users in managing finances.
• On Government Agencies: Minimal direct impact, but agencies like the Federal Deposit Insurance Corporation (FDIC) and National Credit Union Administration (NCUA)—which oversee covered entities—may need to update enforcement guidelines or handle increased compliance monitoring.
• On International Relations: No apparent effects, as the bill focuses on domestic U.S. financial institutions and consumer protections.

Main Stakeholders Affected

• Consumers: Primary beneficiaries, gaining explicit rights to paper statements and protection from coercive digital mandates.
• Depository Institutions and Credit Unions: Required to maintain paper delivery options, potentially increasing operational costs for printing and mailing.
• Financial Regulators: Entities like the FDIC and NCUA, responsible for enforcing compliance and addressing violations.
• Consumer Advocacy Groups: Likely to support and monitor implementation to ensure broad accessibility.

Notable Legal, Constitutional, or Political Implications

• Legal Implications: Enhances consumer protection laws by aligning with principles in statutes like the Truth in Lending Act, which require clear disclosure of financial information. It may lead to new rulemaking by federal agencies to define enforcement mechanisms, such as penalties for non-compliance.
• Constitutional Implications: None significant; the bill respects due process and equal protection by promoting non-discriminatory access to financial services without infringing on private business rights.
• Political Implications: Reflects bipartisan interest in digital equity and consumer rights, potentially influencing broader debates on financial inclusion amid growing reliance on technology. It could set a precedent for similar mandates in other sectors, like utilities or healthcare billing.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Turner, Michael R. [R-OH-10]

Recent Actions

• 2025-07-17: Referred to the House Committee on Financial Services.
• 2025-07-17: Introduced in House
• 2025-07-17: Introduced in House

Bill Versions

• Protecting Against Paperless and Electronic Requirements Act — issued 2025-07-17 — PDF (2 pages)