Bill > SB1078

This bill establishes a comprehensive regulatory framework for debt resolution services in Tennessee, creating new licensing, operational, and consumer protection requirements for companies providing debt management assistance. The bill defines debt resolution services as programs that negotiate, settle, or alter the terms of a consumer's unsecured debts, and requires providers to obtain a license from the state's commissioner of commerce and insurance. Key provisions include mandatory licensing, strict disclosure requirements for consumer agreements, limitations on fees that can be charged, prohibitions on deceptive practices, and detailed record-keeping obligations. Providers must obtain a surety bond, submit to background checks, file annual reports, and adhere to specific consumer protection standards, such as allowing consumers to terminate agreements without penalty and maintaining transparent communication about potential risks and outcomes. The bill also establishes penalties for violations, with potential fines up to $5,000 per violation and a maximum of $100,000, and includes provisions for investigating complaints and enforcing compliance. The new regulations will take effect on January 1, 2026, giving businesses time to prepare for the new requirements, and will apply to debt resolution services licenses applied for or renewed on or after that date.

Business and Industry

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=SB1078&ga=114