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SB 141

Financial Institutions; prohibit fee for periodic paper billing statements

2025 Regular Session

Alabama bill prohibits financial institutions from charging fees for paper billing statements, ensuring free access to periodic statement delivery methods.

Read for the first time and referred to the Senate Committee on State Governmental Affairs
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Bill Summary · SB 141

Legislative bill overview

SB 141 would prohibit financial institutions operating in Alabama from charging customers fees for receiving periodic paper billing statements. The bill applies to banks, credit unions, and other regulated financial entities, effectively mandating free paper statement delivery as a customer service option.

Why this is important

Many financial institutions have shifted to digital-only statements and charge fees to incentivize paperless billing, which can disproportionately affect older customers, those without reliable internet access, and individuals who prefer paper records for budgeting or accessibility reasons. This bill addresses equity concerns by ensuring all customers can receive paper statements without additional cost, potentially improving financial transparency and accessibility across socioeconomic groups.

Potential points of contention

  • Operational costs: Financial institutions argue that producing, printing, and mailing paper statements is expensive and that fee structures help recover these costs; mandating free statements could increase expenses passed to other customers
  • Digital transition incentives: The bill removes a financial penalty tool that institutions use to encourage customers toward cheaper digital alternatives, potentially slowing the industry's shift to environmentally sustainable practices
  • Regulatory scope: Questions exist about whether the state has authority to regulate federal banking practices and whether this creates compliance conflicts for multi-state institutions

Compiled from official sources — confirm details with the bill’s official record.

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