ABA Urges Lawmakers to Pass E-Sign Modernization Bill

In a letter to Senate Commerce Committee leaders today, the American Bankers Association called on lawmakers to support S. 4159, the E-Sign Modernization Act, sponsored by Sen. John Thune (R-S.D.), Jerry Moran (R-Kan.) and Todd Young (R-Ind.). The bill—which is up for consideration in the committee this week—would streamline how consumers consent to receiving electronic documents, such as bank statements, account information and contracts.

The bill would update the 20-year-old E-Sign Act to reflect advancements in technology and shifting consumer preferences. Specifically, it would remove the current requirement for consumers to reasonably demonstrate that they can access documents electronically before they can receive an electronic version—which ABA noted created obstacles for companies of all sizes during the coronavirus pandemic.

“The E-Sign Modernization Act of 2020 updates our country’s laws so that banks can better serve their customers in this unprecedented time,” ABA noted. “[It] will bring the E-SIGN Act into the 21st Century with a straightforward, narrow update and will ensure efficient and timely access to financial services at a time when so many Americans are in need of immediate help.”