|
November 3, 1999 The Lobbyists/By DEAN ANASON HOUSE WON'T SIGN OFF ON DIGITAL SIGNATURES The House late Monday rejected legislation that would authorize the use of electronic signatures in transactions. The principal snag was a provision sought by the financial services industry that would permit companies to make mortgage and other disclosures required by federal consumer protection laws electronically -- instead of on paper. Back by consumer advocates, the White House and influential Democrats strongly opposed that provision. "Consumers must be granted the same protections on-line that they currently receive off-line under existing laws and regulations," the Clinton administration said in a statement Monday. "Unfortunately, many Americans today do not enjoy reliable and regular access to the Internet." The industry had argued that lenders would be required to get customer permission to use electronic records. But in blasting the House bill, the administration said consumers might not realize they would be signing away their rights to paper documents because the notice would not have to be conspicuous or clear. "This provision requires just an additional paragraph of small print in the form contract prepared by a business," its statement said. The House bill was considered under rules for expedited approval that require a two-thirds majority; it fell four votes short. It is unclear whether the House bill will be revived, or if the Senate version will be voted on before Congress adjourns mid-month. The software industry is pressing for passage this year of a scaled-down electronic signatures bill, but Kirk G. Willison, government affairs director at Countrywide Home Loans Inc., said financial firms would rather wait until next year for a broader bill. "If something passes now, we might not get another bite at the apple," he said. Jeremiah S. Buckley, counsel for the Electronic Financial Services Council, said, "Not to be able to provide required disclosures and other documents associated with the transactions electronically would make the bill useless for most of the financial services industry." |
||||