Tennessee Code Title 47. Commercial Instruments and Transactions § 47-18-5813

Current as of January 02, 2024 | Updated by Findlaw Staff

(a) A licensee shall not impose, directly or indirectly, a fee or other charge on a consumer, or receive payment from or on behalf of a consumer, for performing debt resolution services, except as provided in this section.

(b) A licensee shall not request or receive payment of any fee or consideration for any debt resolution services unless:

(1) The licensee and the consumer have signed an agreement that complies with § 47-18-5809;

(2) The licensee has renegotiated, resolved, reduced, or otherwise altered the terms of at least one (1) debt pursuant to a resolution agreement or other such valid contractual agreement executed by the consumer and the creditor;

(3) The consumer has made at least one (1) payment pursuant to the resolution agreement or other valid contractual agreement between the consumer and the creditor; and

(4) To the extent that debts enrolled in a service are renegotiated, resolved, reduced, or otherwise altered individually, the fee or consideration either:

(A) Bears the same proportional relationship to the total fee for renegotiating, resolving, reducing, or altering the terms of the entire debt balance as the individual debt amount bears to the entire debt amount. The individual debt amount and the entire debt amount are those owed at the time the debt was enrolled in the service; or

(B) Is a percentage of the amount saved as a result of the renegotiation, resolution, reduction, or alteration. The percentage charged cannot change from one (1) individual debt to another. The amount saved is the difference between the amount owed at the time the debt was enrolled in the service and the amount actually paid to satisfy the debt.

(c) Any fee or other charge imposed by or on behalf of a dedicated account service provider in connection with the administration of a dedicated account is not a fee or other charge imposed for performing debt resolution services for purposes of this part.

(d) Any fee or other charge imposed by or on behalf of a third-party legal service provider is not a fee or other charge imposed by a licensee for performing debt resolution services for purposes of this part.

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Cite this article: FindLaw.com - Tennessee Code Title 47. Commercial Instruments and Transactions § 47-18-5813 - last updated January 02, 2024 | https://codes.findlaw.com/tn/title-47-commercial-instruments-and-transactions/tn-code-sect-47-18-5813/

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