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TN HB1011
Bill
Status
3/19/2025
Primary Sponsor
Monty Fritts
Click for details
AI Summary
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Online payment system operators must provide written notice to users before freezing their funds, with notice required for both senders and intended recipients of affected transactions
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Exception allows operators to freeze funds first if they reasonably believe financial exploitation, fraud, or other legal violations have occurred, but notice must still be provided within 30 days
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"Online payment system" covers internet-based money transfer platforms but excludes systems operated by banks, savings and loan associations, or credit unions
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Violations constitute unfair or deceptive acts under Tennessee's Consumer Protection Act (§ 47-18-104) and are subject to penalties under that statute
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Effective July 1, 2025, applying to contracts entered into, amended, or renewed on or after that date
Legislative Description
AN ACT to amend Tennessee Code Annotated, Title 45 and Title 47, Chapter 18, relative to online payment systems.
Consumer Protection
Last Action
Failed in s/c Banking and Consumer Affairs Subcommittee of Commerce Committee
3/19/2025