Senate Commerce Committee Members Introduce Bill to Update E-SIGN Act

The proposal would modernize the E-Sign Act

7/2/2020 2:30 PM

NewsAdvocacy
Senate Commerce Committee Members Introduce Bill to Update E-SIGN Act

Members of the Senate Committee on Commerce, Science, and Transportation introduced bipartisan legislation, the E-SIGN Modernization Act of 2020, July 2 to streamline the process for consumers receiving electronic documents.

U.S. Sens. John Thune, R-S.D., Jerry Moran, R-Kan., and Todd Young, R-Ind., introduced the legislation with requirements on streamlining how consumers consent to receiving electronic documents like bank statements, account information, and contracts, according to a news release from Thune’s office.

“ACA International applauds Congress and strongly supports the actions taken in the E-SIGN Modernization Act to modernize outdated provisions of the Electronic Signatures in Global and National Commerce Act,” said CEO Mark Neeb. “ACA will also continue to push the CFPB to understand instances where the E-SIGN Act should not apply, such as for electronic disclosures under the FDCPA. However, if the CFPB does find that it applies, these steps toward modernization taken by Congress will be extremely critical for the industry.”

The Electronic Signatures in Global and National Commerce Act (E-SIGN) became law in 2000.

Whether the E-sign act applies to debt collectors seeking to use email has been a major point of issue in the debt collection rulemaking at the CFPB. ACA argued in its comment letter that it should not apply, and also outlined other areas of concern if the CFPB does find that it applies to the use of email. This legislation would be an important step towards addressing some of those concerns with the outdated nature of the e-sign act.

“As technology continues to advance and transform, so too should the laws that govern it,” Thune said in the news release. “Computers, smartphones, 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.”

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demonstrate that they can access documents electronically before they can receive an electronic version, which is an outdated requirement that is no longer necessary given advancements in technology.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, according to the news release.

ACA will continue to advocate on behalf of the industry as this bill progresses through the 116th Congress.

For more information on how the ACA Licensing staff can assist with your licensing needs, please contact us at Licensing@acainternational.org or call (952) 926-6547.


Follow ACA International on Twitter @ACAIntl and @acacollector, Facebook and request to join our LinkedIn group for news and event updates. ACA International members are welcome to submit news items for possible publication to comm@acainternational.org. Visit our publications page for news submission guidelines and subscriptions to ACA Daily, Collector magazine and Pulse.

Advertising is available for companies wishing to promote their products or services. Be sure to visit the ACA Events Calendar on the Education and Training page to view our listing of upcoming CORE Curriculum and Hot Topic seminars featuring critical educational opportunities for your company.


Subscribe to ACA Daily NEWSROOM

Senate Commerce Committee Members Introduce Bill to Update E-SIGN Act

Members of the Senate Committee on Commerce, Science, and Transportation introduced bipartisan legislation, the E-SIGN Modernization Act of 2020, July 2 to streamline the process for consumers receiving electronic documents.

U.S. Sens. John Thune, R-S.D., Jerry Moran, R-Kan., and Todd Young, R-Ind., introduced the legislation with requirements on streamlining how consumers consent to receiving electronic documents like bank statements, account information, and contracts, according to a news release from Thune’s office.

“ACA International applauds Congress and strongly supports the actions taken in the E-SIGN Modernization Act to modernize outdated provisions of the Electronic Signatures in Global and National Commerce Act,” said CEO Mark Neeb. “ACA will also continue to push the CFPB to understand instances where the E-SIGN Act should not apply, such as for electronic disclosures under the FDCPA. However, if the CFPB does find that it applies, these steps toward modernization taken by Congress will be extremely critical for the industry.”

The Electronic Signatures in Global and National Commerce Act (E-SIGN) became law in 2000.

Whether the E-sign act applies to debt collectors seeking to use email has been a major point of issue in the debt collection rulemaking at the CFPB. ACA argued in its comment letter that it should not apply, and also outlined other areas of concern if the CFPB does find that it applies to the use of email. This legislation would be an important step towards addressing some of those concerns with the outdated nature of the e-sign act.

“As technology continues to advance and transform, so too should the laws that govern it,” Thune said in the news release. “Computers, smartphones, 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.”

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, according to the news release.

ACA will continue to advocate on behalf of the industry as this bill progresses through the 116th Congress.

For more information on how the ACA Licensing staff can assist with your licensing needs, please contact us at Licensing@acainternational.org or call (952) 926-6547.


Follow ACA International on Twitter @ACAIntl and @acacollector, Facebook and request to join our LinkedIn group for news and event updates. ACA International members are welcome to submit news items for possible publication to comm@acainternational.org. Visit our publications page for news submission guidelines and subscriptions to ACA Daily, Collector magazine and Pulse.

Advertising is available for companies wishing to promote their products or services. Be sure to visit the ACA Events Calendar on the Education and Training page to view our listing of upcoming CORE Curriculum and Hot Topic seminars featuring critical educational opportunities for your company.


Subscribe to ACA Daily NEWSROOM

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