CUNA wrote to Chairman Roger Wicker
and Ranking Member Maria Cantwell prior to the Senate Committee on Commerce, Science, and
Transportation's markup scheduled on a number of bills. Our letter was written in support of S. 4159, the E-SIGN Modernization Act.
The Electronic Signatures in Global and National Commerce Act
(“E-SIGN Act”), was enacted in 2000, when the Internet was a simpler place in
terms of capability, yet the Internet was much more complex to use as many
standards were still being developed. Thus, because the E-SIGN Act was designed
in the commercial Internet’s infancy, updates are needed to ensure efficient
commerce over today’s much more mature and capable Internet.
The E-Sign Modernization Act of 2020 is a strong step toward balancing community health with financial well-being. Enhancing consumer access to online services will ensure that consumers and the financial first responders meeting their pecuniary needs remain safe in our current operating environment. Specifically, it would remove the requirement in the Electronic Signatures in Global and National Commerce Act requiring consumers to reasonably demonstrate their ability to access information electronically prior to consenting to electronic records.
The letter also notes that while we realize that some consumer groups will argue the E-SIGN Modernization Act will harm consumers, this is not true. Disclosures required by law will still be provided to consumers with the substantive change
being that outdated delivery requirements will be modernized. In the time of COVID, possible mail
disruptions and the ubiquitous smartphone, mandating a particular delivery method is not necessary and
possibly harmful to consumers. The true consumer harm is from the current laws barriers to consumer
choosing electronic delivery, which is the safest and most efficient way to receive documents.