# Tenn. Code Ann. § 45-15-115: Prohibited actions by lender > Tennessee · Statutes · In force URL: https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C15_S45-15-115 ## Section - **Citation:** Tenn. Code Ann. § 45-15-115 - **Heading:** Prohibited actions by lender - **Jurisdiction:** Tennessee - **Kind:** Statutes - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** TN Code / Title 45 / Chapter 15 / Section 45-15-115 ## Text A title pledge lender shall not: (1) Accept a pledge from a person less than eighteen (18) years of age, or from anyone who appears to be intoxicated; (2) Make any agreement giving the title pledge lender any recourse against the pledgor, other than the title pledge lender's right to take possession of the titled personal property and certificate of title upon the pledgor's default or failure to redeem, and to sell or otherwise dispose of the titled personal property, in accordance with this chapter; (3) Enter into a title pledge agreement in which the amount of money loaned, when combined with the outstanding balance of other outstanding title pledge agreements the pledgor has with the same lender secured by any single certificate of title, exceeds two thousand five hundred dollars ($2,500), or enter into a property pledge agreement in which the amount of money loaned exceeds two thousand five hundred dollars ($2,500); (4) Accept any waiver, in writing or otherwise, of any right or protection accorded a pledgor under this chapter; (5) Fail to exercise reasonable care to protect from loss or damage titled personal property or certificate of title in the physical possession of the title pledge lender; (6) Purchase pledged titled personal property that was repossessed in the operation of the lender's business; (7) Maintain more than one (1) title pledge office or place of operation for each title pledge lender under each license; provided, however, that the title pledge lender may move from one (1) place of business to another, as permitted in § 45-15-109(a)(1) ; (8) Keep open any title pledge office before eight o'clock a.m. (8:00 a.m.), or after six o'clock p.m. (6:00 p.m.), on any day during the year, with the exception of November 25 through December 24 of each year. During that period, a title pledge lender may open the place of business at eight o'clock a.m. (8:00 am.), and shall be entitled to close at nine o'clock p.m. (9:00 p.m.). No title pledge lender shall be open on Sunday. Nothing in this subdivision (8) prohibits a title pledge lender from accepting a payment pursuant to an existing title pledge or property pledge agreement at any time; (9) Enter into a pledge agreement, unless the pledgor presents a clear title to titled personal property at the time that the loan is made, and the title is retained, after noting of the lien by the state, in the physical possession of the title pledge lender. If the title pledge lender files a lien against the property without possession of a clear title to the property, the resulting lien shall be void; (10) Capitalize or add any accrued interest or fee to the original principal of the title pledge agreement or property pledge agreement during any renewal of the agreement; (11) Sell or otherwise charge for any type of insurance in connection with a title pledge agreement or property pledge agreement. Nothing in this subdivision (11) shall prohibit a title pledge lender from offering a pledgor the option to purchase memberships in automobile clubs or associations, as defined in § 55-18-101 ; provided, that the title pledge lender informs the pledgor in writing that the membership is optional, that the membership can be purchased elsewhere, and that the purchase of the membership has no bearing on whether the pledgor receives a loan; (12) Charge a prepayment penalty; (13) Advertise using the words "interest free loans" or "no finance charges," or engage in any other false or misleading advertising; (14) Require a pledgor to provide any additional guaranty as a condition of entering into a title pledge agreement; (15) Use any collection tactics in violation of the federal Fair Debt Collection Practices Act ( 15 U.S.C es a loan; (12) Charge a prepayment penalty; (13) Advertise using the words "interest free loans" or "no finance charges," or engage in any other false or misleading advertising; (14) Require a pledgor to provide any additional guaranty as a condition of entering into a title pledge agreement; (15) Use any collection tactics in violation of the federal Fair Debt Collection Practices Act ( 15 U.S.C. § 1692 et seq.); (16) Renew or otherwise consolidate a title pledge agreement or property pledge agreement with the proceeds of another title pledge agreement or property pledge agreement made by the same title pledge lender; (17) Use any device or agreement, including agreements with affiliated title pledge lenders, with the intent to obtain greater charges than otherwise would be authorized by this chapter; or (18) Violate this chapter or any rule promulgated pursuant to this chapter by the commissioner. Amended by 2013 Tenn. Acts, ch. 70, s 1, eff. 4/1/2013. Acts 1995, ch. 186, § 13; 1996, ch. 718, §2; 1997 , ch. 74, § 1; 2005, ch. 440, § 12. A title pledge lender shall not: (1) Accept a pledge from a person less than eighteen (18) years of age, or from anyone who appears to be intoxicated; (2) Make any agreement giving the title pledge lender any recourse against the pledgor, other than the title pledge lender's right to take possession of the titled personal property and certificate of title upon the pledgor's default or failure to redeem, and to sell or otherwise dispose of the titled personal property, in accordance with this chapter; (3) Enter into a title pledge agreement in which the amount of money loaned, when combined with the outstanding balance of other outstanding title pledge agreements the pledgor has with the same lender secured by any single certificate of title, exceeds two thousand five hundred dollars ($2,500), or enter into a property pledge agreement in which the amount of money loaned exceeds two thousand five hundred dollars ($2,500); (4) Accept any waiver, in writing or otherwise, of any right or protection accorded a pledgor under this chapter; (5) Fail to exercise reasonable care to protect from loss or damage titled personal property or certificate of title in the physical possession of the title pledge lender; (6) Purchase pledged titled personal property that was repossessed in the operation of the lender's business; (7) Maintain more than one (1) title pledge office or place of operation for each title pledge lender under each license; provided, however, that the title pledge lender may move from one (1) place of business to another, as permitted in § 45-15-109(a)(1) ; (8) Keep open any title pledge office before eight o'clock a.m. (8:00 a.m.), or after six o'clock p.m. (6:00 p.m.), on any day during the year, with the exception of November 25 through December 24 of each year. During that period, a title pledge lender may open the place of business at eight o'clock a.m. (8:00 am.), and shall be entitled to close at nine o'clock p.m. (9:00 p.m.). No title pledge lender shall be open on Sunday. Nothing in this subdivision (8) prohibits a title pledge lender from accepting a payment pursuant to an existing title pledge or property pledge agreement at any time; (9) Enter into a pledge agreement, unless the pledgor presents a clear title to titled personal property at the time that the loan is made, and the title is retained, after noting of the lien by the state, in the physical possession of the title pledge lender. If the title pledge lender files a lien against the property without possession of a clear title to the property, the resulting lien shall be void; (10) Capitalize or add any accrued interest or fee to the original principal of the title pledge agreement or property pledge agreement during any renewal of the agreement; f the lien by the state, in the physical possession of the title pledge lender. If the title pledge lender files a lien against the property without possession of a clear title to the property, the resulting lien shall be void; (10) Capitalize or add any accrued interest or fee to the original principal of the title pledge agreement or property pledge agreement during any renewal of the agreement; (11) Sell or otherwise charge for any type of insurance in connection with a title pledge agreement or property pledge agreement. Nothing in this subdivision (11) shall prohibit a title pledge lender from offering a pledgor the option to purchase memberships in automobile clubs or associations, as defined in § 55-18-101 ; provided, that the title pledge lender informs the pledgor in writing that the membership is optional, that the membership can be purchased elsewhere, and that the purchase of the membership has no bearing on whether the pledgor receives a loan; (12) Charge a prepayment penalty; (13) Advertise using the words "interest free loans" or "no finance charges," or engage in any other false or misleading advertising; (14) Require a pledgor to provide any additional guaranty as a condition of entering into a title pledge agreement; (15) Use any collection tactics in violation of the federal Fair Debt Collection Practices Act ( 15 U.S.C. § 1692 et seq.); (16) Renew or otherwise consolidate a title pledge agreement or property pledge agreement with the proceeds of another title pledge agreement or property pledge agreement made by the same title pledge lender; (17) Use any device or agreement, including agreements with affiliated title pledge lenders, with the intent to obtain greater charges than otherwise would be authorized by this chapter; or (18) Violate this chapter or any rule promulgated pursuant to this chapter by the commissioner. Amended by 2013 Tenn. Acts, ch. 70, s 1, eff. 4/1/2013. Acts 1995, ch. 186, § 13; 1996, ch. 718, §2; 1997 , ch. 74, § 1; 2005, ch. 440, § 12. ## Nearby sections - [Tenn. Code Ann. § 45-15-101 Short title](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C15_S45-15-101.md) - [Tenn. Code Ann. § 45-15-102 Purpose](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C15_S45-15-102.md) - [Tenn. Code Ann. § 45-15-103 Chapter definitions](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C15_S45-15-103.md) - [Tenn. Code Ann. § 45-15-104 Authority of licensed title pledge lenders](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C15_S45-15-104.md) - [Tenn. Code Ann. § 45-15-105 License required - Loans made without license void](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C15_S45-15-105.md) - [Tenn. Code Ann. § 45-15-106 Eligibility requirements for license - Application - Fees - Issuance or denial of license - Hearing on denial - Renewal - Change in control of lender](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C15_S45-15-106.md) - [Tenn. Code Ann. § 45-15-107 Suspension or revocation of license](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C15_S45-15-107.md) - [Tenn. Code Ann. § 45-15-108 Rules and regulations - Compliance examinations - Preservation of books and records - Reproduction and preservation of records - Report by commissioner on rates and terms of loans](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C15_S45-15-108.md) - [Tenn. Code Ann. § 45-15-109 Notification to commissioner of changes - Events requiring report to commissioner - Biennial reports](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C15_S45-15-109.md) - [Tenn. Code Ann. § 45-15-110 Record of transactions required - Required information printed on agreement - Execution of agreement - Liens](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C15_S45-15-110.md) - [Tenn. Code Ann. § 45-15-111 Rate of interest and charges - Consumer notification and disclosure form](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C15_S45-15-111.md) - [Tenn. Code Ann. § 45-15-112 Right to redeem](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C15_S45-15-112.md) - [Tenn. Code Ann. § 45-15-113 Thirty-day agreements - Renewal of agreements - Right to cancel - Fees and requirements for renewals](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C15_S45-15-113.md) - [Tenn. Code Ann. § 45-15-114 Twenty-day holding period - Procedure for redemption or failure to redeem - Loss of agreement by pledgor](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C15_S45-15-114.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C15_S45-15-115. Check the current official text before relying on it. Not legal advice.