Bill > HB0772

This bill amends Tennessee law to provide clearer guidelines for premium finance companies regarding convenience fees and handling charges. Specifically, the bill allows premium finance companies to impose a convenience fee when customers pay by electronic means (such as credit card, debit card, or electronic funds transfer), with important restrictions: the fee cannot exceed the actual third-party processing costs, the company must notify customers of the fee before completing the transaction, provide an option 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 (like a check or electronic payment) is not honored by the bank, but limits this to one handling charge per instrument. Importantly, these additional fees are not considered when determining whether a transaction violates usury laws. The legislation aims to help premium finance companies recover their transaction processing costs while providing transparency and consumer protection by requiring clear disclosure and alternative payment options.