A credit services business, and its salespersons, agents and representatives, and independent contractors who sell or attempt to sell the services of a credit services business, shall not do any of the following:

(1) Charge or receive any money or other valuable consideration prior to full and complete performance of the services that the credit services business has agreed to perform for or on behalf of the consumer, including all representations made orally or in writing; however, a credit services business may enter an installment plan with the consumer, so long as that installment plan does not exceed six (6) months and is approved by the commissioner or the commissioner’s designee. “Full and complete performance” means fulfillment of all items listed in the contract and other solicitations or communications to consumers;

Terms Used In Tennessee Code 47-18-1003

  • Commissioner: means the commissioner of commerce and insurance. See Tennessee Code 47-18-1002
  • Consumer: means any individual who is solicited to purchase or who purchases the services of a credit services business. See Tennessee Code 47-18-1002
  • Consumer reporting agency: means any person who, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third parties, and who uses any means or facility of commerce for the purpose of preparing or furnishing consumer reports. See Tennessee Code 47-18-1002
  • Contract: A legal written agreement that becomes binding when signed.
  • Credit services business: means any person who, with respect to the extension of credit by others, sells, provides, or performs, or represents that such person can or will sell, provide, or perform any of the following services in return for the payment of money or other valuable consideration:
    (i) Improving a consumer's credit record, history, or rating. See Tennessee Code 47-18-1002
  • Extension of credit: means the right to defer payment of debt or to incur debt and defer its payment, offered or granted primarily for personal, family, or household purposes. See Tennessee Code 47-18-1002
  • Fraud: Intentional deception resulting in injury to another.
  • Grantor: The person who establishes a trust and places property into it.
  • Person: includes an individual, corporation, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, two (2) or more persons having a joint or common interest, and any other legal or commercial entity. See Tennessee Code 47-18-1002
  • Record: means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in a perceivable form. See Tennessee Code 1-3-105
  • State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
(2) Charge or receive any money or other valuable consideration solely for referral of the consumer to a retail seller or to any other credit grantor who will or may extend credit to the consumer, if the credit that is or will be extended to the consumer is upon substantially the same terms as those available to the general public;
(3) Make, or counsel or advise any consumer to make, any statement that is untrue or misleading and which is known, or which by the exercise of reasonable care should be known, to be untrue or misleading, to a consumer reporting agency or to any person who has extended credit to a consumer or to whom a consumer is applying for an extension of credit, with respect to a consumer’s creditworthiness, credit standing, or credit capacity;
(4) Make or use any untrue or misleading representations in the offer or sale of the services of a credit services business or engage, directly or indirectly, in any act, practice, or course of business which operates or would operate as a fraud or deception upon any person in connection with the offer or sale of the services of a credit services business;
(5) Create, or assist or advise the consumer to create a new credit record by using a different name, address, social security number, or employee identification number;
(6) Provide, in any manner, the services of a credit services business within this state, without registering a bond consistent with § 47-18-1011;
(7) Remove, assist or advise the consumer to remove or otherwise alter adverse information from the consumer’s credit record which is accurate or not obsolete;
(8) Create, assist or advise the consumer to request that positive information be inserted or included on the consumer’s credit record which is false, inaccurate or obsolete;
(9) Use a program or plan which uses or employs installment payments featuring payments charged directly to a credit card prior to full and complete performance of the services that the credit services business has agreed to perform for or on behalf of the consumer, except as permitted under subdivision (1); or
(10) Engaging in any violation of the federal Consumer Credit Protection Act.
  Previous section
Next section  
 Part 10 Contents