Roukema, Lazio, Inslee Introduce Bill
to Allow On-Line Disclosure of Banking Information

Banks would be able to provide legally required notices and disclosures over the Internet under legislation introduced today by U.S. Representatives Marge Roukema, R-N.J.-5th, Rick Lazio, R-N.Y.-2nd, and Jay Inslee, D-Wash.-1st.

"Millions of consumers today routinely conduct business over the Internet and increasing numbers of them are doing their banking on the web," Roukema said. "Consumers can check their balances, transfer funds and pay bills without leaving home. But many financial services, particularly those involving loans and mortgages, remain off-limits to electronic commerce because of antiquated laws requiring paper documents or face-to-face transactions. This legislation is necessary if we are to take full advantage of the current technology - and if we are to keep technology from leaping ahead of our nation's laws to regulate it."

"Without congressional action, some banks may simply begin to make electronic disclosures without statutory or regulatory guidelines," Roukema said. "Congress should provide uniform standards so that disclosures will be delivered to consumers under the same set of rules by all financial services providers. This legislation is a first step toward making on-line financial transactions practical. It puts Congress on record as committed to playing a leadership role in promoting electronic commerce while preserving and, indeed, enhancing consumer protections."

Roukema, the bill's sponsor and chairwoman of the House Subcommittee on Financial Institutions, noted that the Federal Reserve and some other agencies have attempted to address electronic disclosure. Roukema said she supports such efforts and that they should be encouraged.

The Electronic Disclosures Delivery Act would allow financial services companies to give customers legally required disclosures, notices and other information over the Internet and sets rules for doing so. The content of the disclosures would remain the same and the legal rights and responsibilities of all parties would be unchanged.

"The hi-tech industry is the most creative, dynamic industry in the history of the world," Inslee said. "Congress should be encouraging technological developments that serve consumers, yet current law prevents consumers from having electronic access to some financial services. Our bill will give consumers the choice of having instant access to financial services at any time, from any place with a computer."

"Providing financial services such as mortgages, insurance and securities over the Internet is redefining the banking and investment industries and promises to be an area of explosive growth over the next five years," Lazio said. "As Chairman of the Housing Subcommittee I look forward to working with Congresswoman Roukema and Congressman Inslee to promote these legislative changes that will enhance consumer access to financial products while maintaining appropriate consumer protections."