Tennessee House Bill HB0406

Tennessee 2023-2024 Regular Session

• Introduced: 1/24/23
• Refer: 2/1/23
• Refer: 3/14/23
• Refer: 3/21/23
• Chaptered: 5/3/23
• Passed: 5/3/23

Caption

AN ACT to amend Tennessee Code Annotated, Title 45 and Title 47, relative to financing services.

Impact

The impact of HB0406 could be significant in shaping regulations around financing services in Tennessee. By instituting requirements for clearer communication from financing companies, the bill seeks to ensure consumers are better informed about their financial transactions. The legislation reinforces the state's commitment to consumer protection, reinforcing existing frameworks under the Tennessee Consumer Protection Act of 1977. This change emphasizes transparency and intended to protect consumers from potential unfair practices in the loans and credit sector.

Summary

House Bill 0406 aims to amend the Tennessee Code Annotated, specifically Title 45 and Title 47, to enhance consumer protection related to financing services. The bill defines a 'financing company' as an entity providing loans or credit for the purchase of goods and services, specifying that it does not include financial institutions under federal regulation. A key provision requires financing companies operating in Tennessee to include a conspicuous customer service telephone number on any mailed or emailed statements, enabling consumers to contact them easily.

Sentiment

The sentiment among lawmakers towards HB0406 appears to be generally favorable, with supporters advocating for greater consumer rights and protections in financial transactions. The provision requiring clear customer service contact information has received positive feedback, as it reflects an understanding of consumer needs in financial dealings. However, there may be concerns regarding the potential for increased operational burden on financing companies, which could lead to opposing views from industry representatives.

Contention

Notable points of contention surrounding HB0406 may arise from financing companies concerned about the operational implications of the new requirements. Some industry stakeholders may argue that the additional compliance efforts could detract from their ability to serve customers efficiently. Despite the bill's consumer-friendly intentions, the financial industry's reaction and any pushback against regulatory changes signal an ongoing debate between protecting consumer rights and maintaining operational flexibility for financing services.