Bill > HB0743

This bill establishes a comprehensive regulatory framework for debt resolution services in Tennessee, creating detailed licensing, operational, and consumer protection requirements for companies providing debt management assistance. The legislation defines key terms and requires providers of debt resolution services to obtain a license from the Tennessee Commissioner of Commerce and Insurance, submit detailed application materials, maintain specific business practices, and adhere to strict consumer protection guidelines. Key provisions include mandating transparent agreements with consumers that clearly outline service fees and potential risks, establishing requirements for dedicated consumer accounts, prohibiting misleading advertising, limiting fee structures, and giving consumers the right to terminate services at any time without penalty. The bill also empowers the commissioner to investigate providers, assess penalties for violations (up to $5,000 per violation with a maximum of $100,000), and take enforcement actions against companies that do not comply with the regulations. The new law will take effect on January 1, 2026, and will apply to debt resolution service licenses applied for or renewed on or after that date, replacing the existing regulatory framework with a more comprehensive set of rules designed to protect consumers and establish clear operational standards for debt resolution service providers.

Business and Industry

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=HB0743&ga=114