Q: What are Tennessee's requirements for surplus funds recovery services?
I am planning to offer surplus funds recovery services in Tennessee and want to ensure compliance with all state laws and court procedures. Specifically, I'm concerned about licensing and fee structures. I haven't researched specific Tennessee laws yet, and I plan to offer services to both individuals and businesses. Could you provide information on the legal requirements, regulations, and any particular challenges I should be aware of?
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A:
Tennessee Surplus Funds Recovery Requirements
In Tennessee, surplus funds recovery services likely fall under the regulatory oversight of the Tennessee Collection Service Board, as the Tennessee Consumer Protection Act requires third-party debt collectors and debt buyers to register with this board. Upsolve This means you'll need to complete the registration process, which includes providing financial documentation and maintaining proper trust accounts for client funds.
The licensing requirements are detailed in Tennessee Code Annotated, Title 62, Chapter 20, which mandates submitting a current Personal or Corporate Financial Statement prepared by an active CPA, and establishing a trust account as required by statute. Tn Regarding fee structures, you should be aware that some states restrict who can charge fees for surplus recovery services and impose caps on allowable fees. JustAnswer While I couldn't find Tennessee-specific fee limitations, proceeding with caution and transparency in your fee agreements is essential.
A significant challenge you'll face is defining your service boundaries to avoid unauthorized practice of law while still providing value to clients. Lopez Law Group Since surplus funds arise when foreclosure sales generate more money than needed to pay off all liens on the property, your work will involve navigating court procedures and possibly working with attorneys. www.nolo.com I recommend consulting with a Tennessee attorney experienced in real estate law to help establish compliant business practices, proper documentation procedures, and ethical fee structures that align with state requirements before you launch your services.
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