Bill > SB0766

This bill amends Tennessee law to clarify and expand the rules for premium finance companies regarding the collection of convenience fees and handling charges when customers make payments using electronic methods. Specifically, the bill allows premium finance companies to impose a convenience fee when customers pay by credit card, debit card, electronic funds transfer, or electronic check, but with several important restrictions: the fee cannot exceed the actual third-party processing costs, the company must notify the customer of the fee amount before completing the transaction, provide an opportunity to cancel without penalty, and offer alternative payment methods like check or cash without additional fees. The bill also permits these companies to charge a handling fee if a payment instrument is returned or dishonored by a bank, with the limitation that they cannot collect more than one handling charge per check or electronic debit. Importantly, these additional fees will not be considered when determining whether a premium finance agreement violates usury laws. The legislation aims to help premium finance companies recover their costs associated with electronic payment processing while providing consumer protections by mandating transparency and alternative payment options.

Business and Industry

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=SB0766&ga=114