AFSA Plans to Create Standards For Electronic Consumer Contracts.(American Financial Services Association)

American Financial Services Association, a trade group for many of the nation's largest consumer credit companies, has announced plans to develop voluntary standards for the transmission, storage, service and certification of electronic contracts.

The group hopes to develop standards that will provide guidance to lenders for establishing secure and uniform electronic "links" between phases of a consumer credit transaction, said Randy Lively, the association's president and chief executive officer. These links will allow instant transmission of electronic contracts from points of origination (such as branch offices or dealerships) on to lenders, to investment bankers that prepare assets for securitization, and ultimately to investors in the public markets.

"The AFSA standards will embrace the excellent work already underway by various groups to create e-documents or automate certain processes within consumer credit transactions," said Mr. Lively. "Our intent is to allow seamless interaction among these advancements in technology, with full attribution to their developers."

Auto finance will be the first ...