New Law To Regulate Debt Management

A measure signed into law Tuesday will help keep Tennesseans struggling with debt from playing into the hands of frauds.

Because of the recession many Tennesseans are wrestling with financial problems. Commerce and Insurance Commissioner Leslie Newman says not everyone offering to help is legitimate.

“There are unfortunately a lot of scam artists that try and work with folks and make all kinds of claims, and all they do is further exascerbate a terrible problem.”

The new law requires debt managers to register with the state, and tell potential customers up front about their costs and potential risks.

EXTRA:

Commerce and Insurance’s Consumer Affairs Division says credit repair and debtor services were among the leading causes for complaints in 2008, second only to utilities and Internet service providers.

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Four other bills became law Tuesday as well.

One establishes minimum training requirements for firefighters.

Another names the headquarters of the Tennessee Bureau of Investigation in Nashville the “Arzo Carson TBI State Office Building.” It also gives Carson the honorary title of “TBI Director Emeritus.”

Another creates the “Missing Senior Citizen Alert Program.”
This is an alert program coordinated by local law enforcement to find seniors reported missing. An alert may be sent to the media at the local law enforcement agency’s discretion, and a missing person report must be entered with the National Crime Information Center within four hours.

Last is the “Tennessee Small Business Investment Company Credit Act,” which lets the state give tax credits to insurance companies that invest in venture capital funds certified by the Departments of Revenue & Economic and Community Development. In turn those funds must invest in small and start-up companies in the state.