In an action on a consumer debt, or an arbitration proceeding requesting a judgment on a consumer debt, this bill requires the plaintiff creditor to attach the following with the initial pleading:
(1) (i) If a signed contract or other writing evidencing the debtor's agreement to the debt exists, a copy of the contract or other writing; or (ii) if a signed contract or other writing evidencing the debtor's agreement to the debt does not exist, a copy of a document provided to the debtor while the account was active. However, for a revolving credit account, a copy of a charge off statement or the most recent monthly statement recording a purchase transaction, a last payment, or a balance transfer is sufficient to satisfy this requirement;
(2) A statement that the debt claim has been transferred or assigned;
(3) The date of the transfer or assignment of the debt claim;
(4) The name of any prior holders of the debt; and
(5) The name or a description of the original creditor.
Present law provides that personal property to the aggregate value of $10,000 debtor's equity interest is exempt from execution, seizure, or attachment in the hands or possession of any person who is a bona fide citizen permanently residing in Tennessee, and such person is entitled to this exemption without regard to the debtor's vocation or pursuit or to the ownership of the debtor's abode. Such person may select for exemption the items of the owned and possessed personal property, including money and funds on deposit with a bank or other financial institution, up to the aggregate value of $10,000 debtor's equity interest.
This bill adds to the present law by providing that funds to the aggregate value of $2,500 in a judgment debtor's deposit account with a bank or other financial institution in this state are exempt automatically from execution, seizure, or attachment. However, an exemption under this provision does not apply where the judgment debtor has exercised an exemption under the above provision and not otherwise selected that account for exemption. Additionally, if a judgment debtor maintains multiple deposit accounts, then the judgment creditor is entitled to an order from the court to be issued with the writ of execution or garnishment specifying the account or accounts with an aggregate value of $2,500 for the exemption and that all such other accounts or balances of the judgment debtor that are identified in the application for the order are subject to the writ.
ON APRIL 11, 2024, THE HOUSE ADOPTED AMENDMENT #1 AND PASSED HOUSE BILL 2320, AS AMENDED.
AMENDMENT #1 rewrites the bill as follows:
(1) In an action on consumer debt filed in a general sessions court, requires the plaintiff to include the following information with a civil warrant or any other leading process used to initiate the action: (i) a statement that the debt claim has been transferred or assigned; (ii) the date of the transfer or assignment of the debt claim; (iii) the name of any prior holders of the debt starting at the point of charge off; and (iv) the name or a description of the original creditor;
(2) Prior to an award of a default judgment on any action subject to the requirements of (1), requires the plaintiff to present to the court documentation sufficient to demonstrate the authority of the plaintiff to collect the debt and at least one of the following that is sufficient to demonstrate the existence of the consumer debt: (i) an agreement signed by the consumer; (ii) a record of a purchase, payment, or use of an account; or (iii) a record otherwise demonstrating the debt was incurred;
(3) Establishes that the requirements of the bill apply irrespective of any evidence submitted by the plaintiff, including affidavits submitted to the court;
(4) Establishes that the bill does not apply to a plaintiff who is an original creditor on the consumer debt at issue or is otherwise listed as a lienholder on property securing the debt issue; and
(5) Establishes that a "charge off" means a creditor's removal of a consumer debt as an asset from the creditor's financial records.

Statutes affected:
Introduced: 26-2-103