TN HB0743

Creates the "Debt Resolution Services Act" requiring persons providing debt resolution services in Tennessee to obtain a license from the Commissioner of Commerce and Insurance, with licenses valid for 2 years and requiring a surety bond up to $50,000

Prohibits licensees from collecting fees until they have renegotiated at least one debt and the consumer has made at least one payment under the settlement agreement, with fees calculated proportionally per debt or as a percentage of savings

Requires detailed written agreements disclosing services, fee methodology, estimated timeline, and warnings that debt resolution may harm creditworthiness, result in collection lawsuits, and create taxable income from forgiven debt

Exempts 501(c) nonprofits, attorneys, CPAs, banks, judicial officers, and creditors from licensing requirements while establishing consumer protections including penalty-free termination rights and monthly account statements

Establishes penalties up to $5,000 per violation with a $100,000 maximum, plus investigation costs, with the act taking effect January 1, 2026 for conduct and licensing purposes