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SB 2455

Consumer Protection - As introduced, extends from five to 10 business days the period during which a financial service provider may refuse or delay financial transactions not involving securities due to suspected financial exploitation. - Amends TCA Title 45 and Title 47.

114th Regular Session (2025-2026) Introduced by Paul Bailey

Extends the allowed delay for non-securities financial transactions suspected of exploitation from 5 to 10 business days.

Passed on Second Consideration, refer to Senate Commerce and Labor Committee
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Bill Summary · SB 2455

Summary of Senate Bill 2455 (SB 2455) – 114th Tennessee General Assembly

Basic information

  • Title: Consumer Protection - As introduced, extends from five to 10 business days the period during which a financial service provider may refuse or delay financial transactions not involving securities due to suspected financial exploitation.
  • Jurisdiction: Tennessee
  • Session: 114
  • Introduced by: Senate sponsor Paul Bailey (Co-sponsor)
  • House counterpart: HB 2384 (Vaughan)
  • Effective date: Upon becoming law (immediate effect noted as “public welfare requiring it”)
  • Current status: Passed Second Consideration (as of 2026-02-05); referred to Senate Commerce and Labor Committee earlier; introduced and passed First Consideration on 2026-02-02

Purpose and intent

  • The bill seeks to modify the handling period for financial transactions that are suspected to involve financial exploitation. Specifically, it increases the allowed delay/refusal window from 5 business days to 10 business days for non-securities-related financial transactions.

Key provisions and changes

  • Amendment to statute: Tennessee Code Annotated, Title 45, sections related to financial transaction practices are amended.
    • Section 45-2-1203(e)(2): The phrase “Five (5)” is replaced with “Ten (10)” in the specified provision.
  • Scope of transactions: Applies to financial transactions not involving securities where suspicion of financial exploitation may warrant delaying or refusing processing.
  • Operational impact on providers: Financial service providers (e.g., banks, credit unions, or other regulated entities operating under Title 45) would extend the permissible period to review, verify, or act on possible exploitation cases from 5 business days to 10 business days.

Who/what is affected

  • Primary beneficiaries/affected entities:
    • Financial service providers operating in Tennessee subject to the cited provisions in Title 45.
    • Consumers engaging in financial transactions who may be subject to or benefit from clearer exploitation protections, as providers have a longer, explicit window to review suspected exploitation.
  • Non-applicability note: The change specifically excludes securities-related transactions from the longer window, per the bill’s description.

Procedural and timeline aspects

  • Legislative action timeline:
    • Filed and introduced on 2026-02-02 (First Consideration).
    • Passed on First Consideration on 2026-02-02.
    • Passed on Second Consideration on 2026-02-05; referred to Senate Commerce and Labor Committee (indicating ongoing committee review).
  • Fiscal impact: Described as not significant; no notable economic burden anticipated for state/local government operations. The fiscal note suggests minimal to no material changes in costs or revenue.

Practical implications

  • Extends protective window for suspected exploitation cases, potentially improving consumer protection by allowing providers more time to perform due diligence.
  • Could affect workflow and turnaround times for processing certain consumer transactions within the context of exploitation safeguards.
  • Since the change is modest (5 to 10 business days), the overall regulatory posture remains intact with minor procedural adjustments.

If you’d like, I can provide a brief comparison with the existing law or draft a user-friendly explainer for consumers and financial institutions.

Compiled from official sources — confirm details with the bill’s official record.

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