Tennessee 2025-2026 Regular Session

Tennessee Senate Bill SB0766 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	HOUSE BILL 772
3	3	By Powers
4	4
5	5	SENATE BILL 766
6	6	By Bailey
7	7
8	8
9	9	SB0766
10	10	002720
11	11	- 1 -
12	12
13	13	AN ACT to amend Tennessee Code Annotated, Title 56,
14	14	Chapter 37, relative to premium finance
15	15	companies.
16	16
17	17	BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
18	18	SECTION 1. Tennessee Code Annotated, Section 56-37-109, is amended by deleting
19	19	subdivision (4) and substituting:
20	20	(4)
21	21	(A) A licensee may also impose and collect a convenience fee from any
22	22	insured paying by credit card, debit card, electronic funds transfer, electronic
23	23	check, or other electronic means in order to offset actual costs incurred by a
24	24	licensee in accepting and processing payments made by electronic means.
25	25	(B)
26	26	(i) A convenience fee collected by a licensee pursuant to this
27	27	subdivision (4) must not exceed the actual costs incurred by the licensee;
28	28	provided, that, a licensee may impose a convenience fee in lieu of the
29	29	actual cost of the individual payment type that does not exceed the
30	30	average of the actual cost incurred for the various types of electronic
31	31	payments for which the licensee imposes a convenience fee.
32	32	(ii)
33	33	(a) As used in subdivision (4)(B)(i), "actual cost" means
34	34	actual third-party costs incurred for the processing of payments
35	35	made by electronic means.
36	36
37	37
38	38	- 2 - 002720
39	39
40	40	(b) For purposes of determining actual costs as defined in
41	41	subdivision (4)(B)(ii)(a), if a licensee is a subsidiary of an entity
42	42	that processes payments made by electronic means, then the
43	43	costs incurred by the licensee's parent entity are third-party costs.
44	44	(C) A licensee charging a convenience fee pursuant to this subdivision
45	45	(4) shall notify the insured of the amount of the fee prior to completing a
46	46	transaction, provide an opportunity for the insured to cancel the transaction
47	47	without incurring a fee, and make available the option to make a payment on a
48	48	loan by check, cash, or money order directly to the licensee without the
49	49	imposition of a convenience fee for a card payment or electronic payment.
50	50	(D) When an insured elects to make a payment to the licensee by credit
51	51	card, debit card, electronic funds transfer, electronic check, or other electronic
52	52	means and a convenience fee is imposed and collected pursuant to this
53	53	subdivision (4), the payment of the convenience fee is not refundable.
54	54	(E) The convenience fee described in this subdivision (4) may be
55	55	charged in addition to all other interest and fees allowed by law.
56	56	(F) A licensee shall not charge a convenience fee on any debit card or
57	57	prepaid card transaction if the payment card network on which the transaction is
58	58	initiated or processed prohibits such convenience fee by contract, rule, or policy.
59	59	(5) Licensees may also charge and collect from the insured, through regular
60	60	billing procedure or otherwise, a handling charge pursuant to § 47-29-102 for a draft,
61	61	check, electronic funds transfer, electronic check, card payment, or any other electronic
62	62	payment, negotiable order of withdrawal, or like instrument drawn on a bank or other
63	63	depository institution given by any person in full or partial repayment of a loan or other
64	64
65	65
66	66	- 3 - 002720
67	67
68	68	extension of credit if the instrument is not paid or dishonored by the institution; provided,
69	69	that a licensee:
70	70	(A) May redeposit the instrument with the institution or return the
71	71	dishonored instrument to the insured or person to whom the credit was extended
72	72	upon redemption of the instrument; and
73	73	(B) Shall not collect more than one (1) handling charge on any one (1)
74	74	check or electronic debit authorization.
75	75	(6) The charges referred to in this section must not be considered directly or
76	76	indirectly in determining whether a violation of usury laws has occurred under a premium
77	77	finance agreement.
78	78	SECTION 2. This act takes effect upon becoming a law, the public welfare requiring it.