For contracts or agreements entered into, amended, or renewed on or after July 1, 2025, this bill generally prohibits an operator of an online payment system from freezing the funds of a user without first providing the affected user with written notice of the online payment system's intent to freeze the user's funds. The operator must provide the notice to all users involved in an affected transaction, including the user attempting to send money and the user who is the intended recipient of the money. If an operator of an online payment system has a reasonable belief that financial exploitation may have occurred, may have been attempted, or is being attempted, or that fraud or a violation of another law or regulation has occurred or is occurring, then this bill requires the operator of the online payment system to provide notice as described above within 30 days of freezing the funds. Notice so given must be limited or otherwise provided in a manner that complies with federal regulations, if applicable. This bill provides that a violation of this bill by an online payment system constitutes an unfair or deceptive act prohibited under the "Tennessee Consumer Protection Act of 1977," and is punishable as provided in that act.

Statutes affected:
Introduced: 47-18-104(b), 47-18-104