House Bill 772 amends Tennessee Code Annotated, Section 56-37-109, to provide clearer guidelines regarding convenience fees that premium finance companies can impose on insured individuals making payments through electronic means. The bill allows licensees to collect a convenience fee to offset actual costs incurred in processing electronic payments, with the stipulation that the fee must not exceed the actual costs. Additionally, it mandates that licensees must inform the insured of the fee amount before completing a transaction, offer the option to cancel without incurring a fee, and allow payments via check, cash, or money order without a convenience fee.

The bill also specifies that convenience fees are non-refundable and can be charged alongside other legal fees and interest. Furthermore, it prohibits licensees from charging convenience fees on debit or prepaid card transactions if the payment card network prohibits such fees. The legislation clarifies that handling charges related to dishonored payments can be collected, but only one handling charge can be applied per check or electronic debit authorization. Overall, the bill aims to enhance transparency and fairness in the collection of fees by premium finance companies.

Statutes affected:
Introduced: 56-37-109