[Congressional Record Volume 145, Number 108 (Wednesday, July 28, 1999)]
[Extensions of Remarks]
[Page E1673]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              ELECTRONIC DISCLOSURES DELIVERY ACT OF 1999

                                 ______
                                 

                           HON. MARGE ROUKEMA

                             of new jersey

                    in the house of representatives

                         Tuesday, July 27, 1999

  Mrs. ROUKEMA. Mr. Speaker, millions of consumers today routinely 
conduct business over the Internet, buying and selling a myriad of 
products and services from companies large and small, near and far. 
Many of these consumers already conduct much of their banking business 
over the web, checking balances, transferring funds and paying bills 
without leaving their homes. This explosion of on-line banking offers 
great benefits on both sides of the transactions: even the tiniest 
small-town bank can have access to a national marketplace, while 
consumers can comparison shop for the best interest rates or services. 
Nonetheless, the delivery of many financial services over the Internet, 
such as loans and mortgages, are limited by antiquated laws requiring 
paper documents or face-to-face transactions.
  That is why I am joining today with Congressmen Rick Lazio and Jay 
Inslee to introduce the Electronic Disclosures Delivery Act of 1999. 
This legislation is necessary if we are to take full advantage of the 
current technology--and if we are to keep technology from leaping far 
ahead of the ability of our nation's laws to regulate it.
  The Electronic Disclosures Delivery Act addresses the electronic 
delivery of disclosures, notices and other information over the 
Internet. It allows these actions to be provided electronically, but 
does not lessen the rights or responsibilities of any party or affect 
the content of any disclosure, including both the timing, format and 
information to be provided.
  This legislation is a first step toward making on-line financial 
transactions practical. It would put Congress on record as committed to 
playing a leadership role in promoting electronic commerce while 
preserving and, indeed, enhancing consumer protections. Mr. Lazio and I 
plan to hold hearings in our respective subcommittees to ensure that 
all interested parties' views are heard.
  On-line disclosures will provide consumers with a number of benefits:
  Convenience and time-saving--Consumers can conduct transactions 
virtually anywhere and at any time, 7-days-a-week, 24-hours-a-day.
  User friendly information--Legalistic jargon in on-line disclosure 
forms can be linked to plain-English definitions, making them much more 
readable and understandable. Consumers can electronically search 
documents rather than reading through reams of paper.
  Enhanced services for under-served communities--Rural and urban 
communities will have enhanced access to financial services, even where 
brick and mortar branches are not available. In areas where residents 
cannot afford computers, libraries and schools provide on-line access.
  Reduced cost--Electronic delivery of disclosures will cost less than 
providing the same information on paper or paying employees to handle 
face-to-face disclosures. Competition should encourage business to pass 
on those savings to consumers.
  Congressional guidance on electronic disclosures is needed 
immediately, given that most of the consumer protection laws now on the 
books were enacted before the Internet became popular. Congress should 
provide uniform standards so that disclosures will be delivered to 
consumers under the same set of rules by all financial service 
providers.
  Some regulators, notably the Federal Reserve, have begun to address 
these issues. But others have not, as in the case of the Department of 
Housing and Urban Development with respect to the Real Estate 
Settlement Procedures Act. Congressional action would provide 
uniformity and clarity among the agencies and provide guidance from the 
only body with the authority to amend the laws in question.
  In sponsoring this legislation, we want to make clear that we do not 
intend to discourage the Federal Reserve from moving ahead. Instead, we 
want to encourage other agencies to follow the Fed's example. If 
anything, we hope the pace of regulatory activity in this area will be 
stimulated by congressional interest and action.
  Congress and the regulators must play a leadership role in updating 
many of the consumer protection laws to reflect new technologies and 
establish a coherent legislative framework for the delivery of 
financial services through electronic commerce. With the introduction 
of this legislation, we can begin the debate that set us on the path to 
enacting responsible legislation that will enhance consumer access to 
financial services while maintaining appropriate consumer protections.

       Summary of the Electronic Disclosures Delivery Act of 1999

       The ``Electronic Disclosures Delivery Act of 1999'' (the 
     Act) amends the Truth in Lending Act, the Equal Credit 
     Opportunity Act, the Fair Credit Reporting Act, the Real 
     Estate Settlement Procedures Act, the Truth in Savings Act 
     and the Consumer Leasing Act to provide for the electronic 
     delivery of disclosures, notices, and any other information 
     that is required to be given to consumers under these acts. 
     The legislation provides that acknowledgments given in 
     connection with disclosures or notices may also be provided 
     electronically.
       Creditors may rely upon the use of electronic 
     communications or acknowledgments to satisfy requirements for 
     delivery of disclosures, notices and other information 
     through electronic communications provided that the consumer:
       Expressly consents to online disclosures and/or 
     acknowledgments and does so electronically; receives a 
     description of the type of information to be provided 
     electronically; receives an explanation of how to access and 
     retain the online disclosures, including consideration of the 
     consumer's ability to print or download such disclosures; and 
     receives a notice of the period of time that the information 
     will be available to the consumer in electronic form.
       The legislation provides the appropriate regulator with the 
     authority to prescribe regulations from time to time to 
     clarify the procedures applicable to the delivery of 
     electronic communications. The legislation further provides 
     the appropriate regulator with the authority to prescribe, 
     without affecting or impairing the legal effectiveness of the 
     delivery of any electronic communication provided for in the 
     Act, procedures which provide consumers with the option to 
     request paper copies of any such communications if it finds 
     that such procedures are necessary and appropriate to 
     supplement electronic communications. The legislation would 
     be effective upon date of enactment.
       The legislation addresses only electronic delivery of 
     information to consumers. It does not affect the substantive 
     rights and responsibilities of any party or the content of 
     any disclosure, including both the timing and format of 
     disclosures and the information to be provided.

     

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