The PAPER Act: Banks Can't Force You to Go Digital for Monthly Statements Anymore

The Protecting Against Paperless and Electronic Requirements Act, or the PAPER Act, is pretty straightforward. It mandates that banks and credit unions—defined here as “covered entities”—must give every customer the choice to receive their monthly account statements printed on paper. The core message is simple: they can’t force you to go paperless just to open an account or keep banking with them (SEC. 2).

This isn't just about offering an option; it's about prohibiting a requirement. Financial institutions cannot make access to their services dependent solely upon the customer agreeing to receive digital statements. For anyone who has felt pressured by their bank to switch to electronic statements—often bundled with promises of saving trees or avoiding fees—this bill restores consumer choice and ensures that paper remains a viable, mandatory option.

The End of Forced Paperless Banking

Think about the last time you opened a new bank account or credit card. Many institutions push hard for paperless statements, sometimes even making it the default or a requirement to get the best interest rate. The PAPER Act shuts that door. If this bill becomes law, banks and credit unions can no longer condition your ability to bank with them on accepting digital-only statements. This is a big win for accessibility, especially for those who rely on physical records.

For example, consider someone who is older, doesn't use the internet much, or lives in a rural area with spotty broadband. They often need those paper statements for budgeting, record-keeping, or tax purposes. Under current practices, they might struggle to access their essential financial data if a bank only offers a digital portal. This bill ensures that these individuals—and anyone else who prefers paper—can maintain full access to their accounts without being digitally penalized (SEC. 2).

Who Pays for the Paper?

While this is clearly beneficial for consumer choice, it’s worth thinking about the practical costs. Banks and credit unions are the groups that will bear the administrative and postage costs of printing and mailing all those statements. This is a significant operational expense that they had largely reduced by pushing customers to digital.

In the real world, institutions don't absorb costs quietly. There is a risk that banks might try to recoup these expenses by raising fees elsewhere, or by charging a specific, high fee for the paper statements themselves—effectively discouraging the choice without technically prohibiting it. The bill ensures the option is available, but doesn't explicitly cap what a bank can charge for exercising that option. This is the implementation challenge to watch: Will banks make the paper option so expensive that it’s functionally unusable for budget-conscious customers?

Balancing Choice and the Environment

There’s also the environmental angle. For years, the push toward paperless was framed as a green initiative. This bill, by mandating the continued availability of paper statements, will naturally increase paper consumption and waste. It trades an environmental benefit for a consumer access benefit. This trade-off highlights the tension between digital efficiency and ensuring that essential services remain accessible to every segment of the population, regardless of their digital fluency or internet access. Ultimately, the PAPER Act prioritizes protecting consumer choice and financial inclusion over the push for universal digitization.