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HB 316

Consumer Protection - As introduced, reduces, from $100 billion to $50 billion, the amount of assets held by a state or national bank, savings and loan association, savings bank, credit union, industrial loan and thrift, or mortgage lender that are necessary to fall within the definition of a financial institution for purposes of the application of certain consumer protections. - Amends TCA Title 4; Title 9; Title 45; Title 47 and Title 56.

114th Regular Session (2025-2026) Introduced by Tim Rudd

Lowers Tennessee's financial institution asset threshold from $100B to $50B, extending state consumer protections to mid-sized banks and credit unions.

Taken off notice for cal in s/c Banking and Consumer Affairs Subcommittee of Commerce Committee
#consumerprotection
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WeVote Research Nonpartisan
Bill Summary · HB 316

Legislative bill overview

HB 316 lowers the asset threshold that triggers financial institution classification—and associated consumer protections—from $100 billion to $50 billion for banks, credit unions, savings institutions, and mortgage lenders in Tennessee. This means smaller financial institutions would now be subject to state consumer protection regulations that previously only applied to larger entities. The bill amends five Tennessee Code Annotated titles governing financial regulation and consumer protection.

Why is this important

Expanding consumer protections to mid-sized financial institutions affects how millions of Tennesseans access banking services, credit, and mortgages. Smaller institutions currently operating above $50 billion in assets would face new compliance requirements, potentially increasing costs that could be passed to consumers through higher fees or stricter lending standards. Conversely, stronger protections may reduce predatory practices and fraud targeting vulnerable borrowers.

Potential points of contention

  • Compliance burden vs. consumer benefit: Institutions between $50-100 billion may argue new regulatory requirements are costly and could reduce competition, while consumer advocates contend stronger oversight prevents abuse
  • Definitional clarity: The bill doesn't specify which consumer protections apply at the new threshold—existing rules may need clarification across five different code sections
  • Regional economic impact: Mid-sized regional and community banks may face disproportionate compliance expenses compared to national institutions with larger compliance departments

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

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