TennesseeHB 0743114th General Assembly (2025-2026)HouseWALLET

AN ACT to amend Tennessee Code Annotated, Title 47, Chapter 18, relative to debt resolution services.

Sponsored By: Kelly Keisling (Republican)

Became Law

Consumer Protection

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Bill Overview

Analyzed Economic Effects

11 provisions identified: 6 benefits, 3 costs, 2 mixed.

Bans on abusive tactics and fake reviews

Starting January 1, 2026, providers and their marketers cannot take power of attorney, divert creditor communications, or control your funds except for earned fees. They cannot mislead you about savings, timelines, credit impact, or legal powers, and cannot buy your debt or take a lien. They must not disclose your identity except as allowed, and they cannot dodge Tennessee law in their contracts. Ads and reviews must be honest—no paying for favorable reviews or running their own ranking sites. They must follow federal endorsement rules.

No upfront fees for debt relief

Starting January 1, 2026, a provider cannot charge you until three things happen. You have a signed, compliant agreement, at least one debt is resolved by a valid agreement with the creditor, and you make a payment under that agreement. Fees must be split fairly across debts or use the same percent of savings for each debt. Fees charged by dedicated account providers or third‑party legal providers are not treated as the provider’s fees under this law.

Option to defer fees, safe credit help

Beginning January 1, 2026, a provider may let you defer some or all of its own fees at no extra cost. A provider may help you arrange credit only with a lender that is licensed or exempt in Tennessee. This can lower what you pay right away, but the law does not set interest rates or loan terms.

Stronger state enforcement of debt firms

Starting July 1, 2025, the commissioner can make rules, investigate records, take complaints, and summarily suspend a license to protect the public. Beginning January 1, 2026, the commissioner may deny, suspend, revoke, or refuse to renew a license, with written findings and a right to appeal. Civil penalties can reach up to $5,000 per violation, capped at $100,000 total, plus investigation costs; each day can count as a separate violation. The commissioner can require books and records, and licensees generally get notice and a hearing before suspension or revocation. Enforcement actions must start by the later of four years after discovery or the criminal statute of limitations.

License and bond for debt relief firms

Beginning January 1, 2026, you must hold a state license to offer debt relief in Tennessee. You must keep a surety bond set by the commissioner, up to $50,000, while licensed and for two years after you stop. Initial licenses last two years. Applications and renewals must include items like tax registration proof, officer identities, client agreements and fee schedules, two years of financials, and any required accreditation. The commissioner may require fingerprints and criminal history checks for executive officers, and you must report major business changes within 30 days.

Your dedicated account stays yours

Beginning January 1, 2026, money you set aside for settlements must sit in your own FDIC‑insured account. You own the funds and any interest. The account provider must be independent of the debt‑relief company and cannot pay or get referral fees. You may close the account at any time, and the company must notify the account provider within five business days. Your agreement must disclose these protections.

Some providers are exempt from licensing

Starting January 1, 2026, some groups do not need a debt‑relief license. Examples include certain nonprofits, banks, Tennessee lawyers working with clients, creditors, some accountants, some dedicated account providers, and people who only market for a licensee. Some exemptions have conditions written in the law.

Transition rules for older licenses

Beginning January 1, 2026, deals under licenses issued before that date can be finished or enforced under the old rules. Firms with Part 55 licenses for services other than debt relief may keep operating under those licenses without moving to the new system.

Annual reports required for debt firms

Beginning January 1, 2026, each licensed provider must file a sworn annual report. The report must show active and enrolled Tennessee consumers and total fees collected. The commissioner can require fixes within 30 days. Late or missing reports can lead to fines or license actions.

Clear disclosures, statements, and record access

Starting January 1, 2026, providers must give you a copy of your signed agreement and plain‑English disclosures on fees, timelines, risks, and any arbitration. You get monthly account statements and, if you ask, a statement within five business days (not more than once a month). A secure 24/7 portal with full details also counts. Providers must keep a toll‑free phone line and show their name and contact info on their website. You can request your program materials for free within five business days if you ask within 90 days after the program ends; later requests up to two years must be filled in a reasonable time. Firms must also keep certain records for two years, and signed agreements for five years.

Easy cancellation and clear termination rules

Beginning January 1, 2026, you can end a debt‑relief agreement at any time without penalty by electronic notice, writing, or recorded phone. The provider must tell you within two business days how this affects pending deals and, within five business days after that, request how to handle your funds if you give no new instructions. The provider may collect only fees already earned before your notice. A provider may end the agreement if you miss a required obligation and do not fix it by the sixth day, or immediately if you refuse to pay an already‑earned fee after written notice.

Sponsors & Cosponsors

Sponsor

Kelly Keisling
Republican • House

Cosponsors

Johnny Garrett
Republican • House

Roll Call Votes

All Roll Calls

Yes: 153 • No: 1

Senate vote • 4/10/2025

FLOOR VOTE: Third Consideration 4/10/2025

Yes: 31 • No: 1

House vote • 3/31/2025

FLOOR VOTE: REGULAR CALENDAR AS AMENDED PASSAGE ON THIRD CONSIDERATION 3/31/2025

Yes: 93 • No: 0

House vote • 3/31/2025

HOUSE CALENDAR & RULES COMMITTEE

Yes: 0 • No: 0

House vote • 3/26/2025

HOUSE COMMERCE COMMITTEE

Yes: 22 • No: 0

House vote • 3/19/2025

HOUSE BANKING AND CONSUMER AFFAIRS SUBCOMMITTEE

Yes: 7 • No: 0

Actions Timeline

Pub. Ch. 287
4/28/2025
Effective date(s) 07/01/2025, 01/01/2026
4/28/2025
Signed by Governor.
4/24/2025
Transmitted to Governor for his action.
4/16/2025House
Signed by Senate Speaker
4/15/2025Senate
Signed by H. Speaker
4/14/2025House
Enrolled; ready for sig. of H. Speaker.
4/11/2025House
Senate substituted House Bill for companion Senate Bill.
4/10/2025Senate
Amendment withdrawn. (Amendment 1 - SA0232)
4/10/2025Senate
Passed Senate, Ayes 31, Nays 1
4/10/2025Senate
Received from House, Passed on First Consideration
4/3/2025Senate
Engrossed; ready for transmission to Sen.
4/1/2025House
H. adopted am. (Amendment 1 - HA0187)
3/31/2025House
H. adopted am. (Amendment 2 - HA0188)
3/31/2025House
Passed H., as am., Ayes 93, Nays 0, PNV 1
3/31/2025House
H. Placed on Regular Calendar for 3/31/2025
3/27/2025House
Sponsor(s) Added.
3/26/2025House
Rec. for pass. if am., ref. to Calendar & Rules Committee
3/26/2025House
Placed on cal. Calendar & Rules Committee for 3/27/2025
3/26/2025House
Rec for pass if am by s/c ref. to Commerce Committee
3/19/2025House
Placed on cal. Commerce Committee for 3/26/2025
3/19/2025House
Ref. to Commerce Committee
3/12/2025House
Assigned to s/c Banking & Consumer Affairs Subcommittee
3/12/2025House
Placed on s/c cal Banking & Consumer Affairs Subcommittee for 3/19/2025
3/12/2025House
P2C, caption bill, held on desk - pending amdt.
2/6/2025House

Bill Text

HA0187 (Substitute)
3/31/2025
PDF
Enrolled / Public Chapter
PDF
Fiscal Note
PDF
HA0188
PDF
Introduced
PDF
SA0232
PDF

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