Tennessee House Bill HB0894

Tennessee 2023-2024 Regular Session

• Introduced: 1/30/23
• Refer: 2/2/23

Caption

AN ACT to amend Tennessee Code Annotated, Title 45, relative to financial institutions.

Impact

If enacted, HB 0894 will have significant implications for the operations of title pledge lenders in Tennessee. The amendments will alter how these lenders can pursue recourse against borrowers, limiting their actions primarily to taking possession of pledged property and pursuing judgments through court systems for any outstanding debts. Furthermore, the bill will mandate specific operating hours for lenders, thus impacting their availability to customers, particularly during peak periods such as the holiday season. This could lead to increased consumer protection by ensuring borrowers have greater access to their pledged property during crucial times.

Summary

House Bill 0894 aims to amend several provisions of the Tennessee Code Annotated related to financial institutions, specifically focusing on the regulation of title pledge lenders and agreements for deferred presentment of checks. The bill seeks to clarify and modify existing laws governing the operations and limitations placed on title pledge lenders when engaging in business within the state. This includes defining the rights of lenders and borrowers in case of defaults and setting new regulations regarding business hours for title pledge offices, particularly during the holiday season.

Contention

There may be concerns from both proponents and opponents of the bill regarding its potential effects on both lenders and borrowers. Advocates of the bill might argue that the clarified regulations enhance consumer protections and ensure fair treatment in title lending practices. Conversely, critics may voice worries that the restrictions on operational flexibility for lenders could limit access to credit for many individuals who rely on title loans. The changes to deferred presentment agreements may also spark debate, especially on how they influence the ability of individuals to manage their financial obligations effectively.