Tennessee Senate Bill SB0765

Tennessee 2025-2026 Regular Session

• Introduced: 2/4/25
• Engrossed: 3/10/25
• Enrolled: 3/28/25
• Passed: 4/11/25
• Chaptered: 4/30/25

Caption

AN ACT to amend Tennessee Code Annotated, Title 26; Title 45 and Title 47, relative to banking.

Impact

The proposed changes are likely to have significant implications for banking procedures in Tennessee. By amending existing laws, SB 0765 establishes clearer guidelines for garnishees, potentially reducing the time frame during which judgment debtors may remain unaware of legal actions concerning their finances. Furthermore, the bill introduces a mechanism by which judgment debtors can claim reasonable attorney fees if garnishees fail to promptly satisfy their obligations. As such, the new legislative measures are expected to bolster accountability and transparency in financial practices regarding garnishments.

Summary

Senate Bill 0765 aims to amend several sections of the Tennessee Code Annotated relating to garnishment procedures and financial transactions. The bill specifically addresses the responsibilities of garnishees in the event of a garnishment, mandating that they must act within two business days to determine whether they hold any funds belonging to a judgment debtor. It requires garnishees to place a hold on available funds and notify the judgment debtor, as prescribed in the updated regulatory framework. This bill further enhances the protection of judgment debtors by ensuring timely communication regarding any financial actions taken against them.

Sentiment

The sentiment surrounding SB 0765 appears to be largely positive among advocates for consumer rights and legal transparency. Supporters argue that the bill reflects a necessary modernization of financial laws that prioritize the rights of individuals facing garnishment. Conversely, some skepticism exists regarding the implementation of these measures and their potential burden on financial institutions tasked with adhering to the updated regulations. The discussions hint at a broader concern about balancing consumer protection with the operational realities faced by banks and other financial entities.

Contention

While the bill aims to simplify garnishment procedures and provide more protections for debtors, there are concerns among financial institutions regarding the practical implications of such amendments. Critics argue that the requirements could lead to increased operational costs and complexities for garnishees. Additionally, there may be apprehension about how these changes might affect the speed and efficiency of garnishment processes. The bill's provisions for allowing debtors to recover attorney fees may also lead to increased litigation and disputes over compliance.