tn-consumer-debt

name: tn-consumer-debt description: > Subject-matter bundle for defending a Tennessee consumer against debt-collection suits (typically in General Sessions Court). Covers federal FDCPA / Regulation F / FCRA layer; Tennessee Consumer Protection Act (§ 47-18-101 et seq.) with Pursell B2B-collection-conduct limit; Tennessee Collection Service Act (Title 62, Ch. 20) licensing; 2024 § 20-6-104 pre- default-judgment documentation requirement for debt-buyer plaintiffs; chain- of-title under Tennessee UCC Article 9; SOL framework (6-year open-account / 4-year goods); sworn-account device (§ 24-5-107); General Sessions $25k civil cap with unlimited detainer jurisdiction; 10-day de novo appeal to Circuit (§ 27-5-108) where formal discovery applies; 5-pattern fact-pattern triage (stale debt, original creditor's contract, medical debt, default judgment already entered, FDCPA counterclaim). version: 0.1.1

Tennessee Consumer-Debt Defense

NOT LEGAL ADVICE. This skill provides drafting and analytical support for defending consumer-debt suits in Tennessee. Statute numbers, dollar thresholds, and day counts change — verify every citation against the current Tenn. Code Ann. and consult a licensed Tennessee attorney about your specific case.

Use this subject-matter bundle when a Tennessee consumer has been sued by a debt collector — typically a debt buyer (Midland Credit Management, Portfolio Recovery Associates, Cavalry SPV, LVNV Funding, Unifin, etc.) or a collection agency acting for an original creditor. The dominant forum is General Sessions Court; see the "Forum" section below for the strategy that flows from that.

The Tennessee consumer-debt landscape

Tennessee layers a federal regime over a Tennessee-specific one. A critical point at the outset: in Tennessee, the FDCPA and the Tennessee Collection Service Act — not the Tennessee Consumer Protection Act — are the primary debt-collection regimes, for the reasons explained under "The TCPA and its limits" below.

Federal layer

• FDCPA (Fair Debt Collection Practices Act), 15 U.S.C. §§ 1692-1692p — the workhorse for debt-buyer defense and counterclaims
• Regulation F, 12 C.F.R. pt. 1006 — the CFPB regulation interpreting and implementing the FDCPA (effective Nov. 30, 2021; call-frequency, validation-notice, and time/place rules)
• FCRA (Fair Credit Reporting Act), 15 U.S.C. §§ 1681 et seq. — furnisher / re-aging / dispute issues when the debt is also being reported

Tennessee layer

• Tennessee Collection Service Act (TCSA) — Tenn. Code Ann. Title 62, Ch. 20 (§§ 62-20-101 to -124), administered by the Tennessee Collection Service Board (Dept. of Commerce & Insurance). Licensing requirement at § 62-20-105.
• Tennessee Consumer Protection Act (TCPA) — Tenn. Code Ann. § 47-18-101 et seq. Treble damages and discretionary fees for willful/knowing violations (§ 47-18-109), but with an important limit in the collection context (below).
• New pre-default-judgment documentation statute — Tenn. Code Ann. § 20-6-104 (2024 Tenn. Acts ch. 914, eff. July 1, 2024). Feature this prominently in any debt-buyer case.
• Tennessee UCC Article 9 — governs the assignments that make up a debt buyer's chain of title.

Forum — why General Sessions changes everything

Most Tennessee consumer-debt suits are filed in General Sessions Court, a court of limited jurisdiction:

• Civil jurisdiction cap = $25,000 (Tenn. Code Ann. § 16-15-501; attorney's fees and costs are excluded from the cap — verify the current figure).
• Informal procedure — no formal discovery as of right. The Tennessee Rules of Civil Procedure generally do not apply in General Sessions except where specifically made applicable, so a defendant cannot serve interrogatories / RFPs as of right there.
• De novo appeal to Circuit Court within 10 days of entry of the General Sessions judgment (Tenn. Code Ann. § 27-5-108). On a de novo appeal the case is tried afresh in Circuit Court under the full Tennessee Rules of Civil Procedure — and formal discovery DOES apply.

Strategic consequence: the single most powerful procedural lever in many Tennessee debt-buyer cases is the 10-day de novo appeal. A timely de novo appeal to Circuit moves the case into a forum where the consumer can take discovery of the chain of title and the account documentation — the records the debt buyer often cannot produce. Calendar the 10-day clock under § 27-5-108 immediately (see tn-deadlines and tn-post-judgment); it is short and non-forgiving.

The new § 20-6-104 documentation requirement (2024)

Tenn. Code Ann. § 20-6-104 (added by 2024 Tenn. Acts ch. 914, effective July 1, 2024) is the most significant recent development in Tennessee debt-buyer defense. Before a court may enter any default judgment in favor of a debt-buyer / "subsequent creditor" plaintiff, the plaintiff must present:

1. Documentation showing the plaintiff's authority to collect the debt (i.e., the chain of assignment from the original creditor), irrespective of any affidavit; AND
2. At least one document showing the debt's existence (e.g., an account statement or the underlying agreement).

Key points:

• It applies to subsequent creditors / debt buyers, NOT to original creditors / lienholders. Identify which the plaintiff is at the outset.
• It is a default-judgment gate. Even a defendant who never appears benefits — but a defendant who does appear can hold the plaintiff to this proof and argue it has not satisfied the standard.
• It is on top of the ordinary evidentiary foundation requirements (below); satisfying an affidavit does not satisfy § 20-6-104.

Verify the exact current text and any implementing case law before relying — this is a brand-new statute.

The TCPA and its limits — read this before pleading a TCPA claim

The Tennessee Consumer Protection Act (Tenn. Code Ann. § 47-18-101 et seq.) is a powerful statute on paper:

• Treble damages for a willful or knowing violation, plus discretionary attorney's fees (Tenn. Code Ann. § 47-18-109).
• SOL: one year from discovery, with a five-year repose (Tenn. Code Ann. § 47-18-110).

BUT — and this is critical — under Pursell v. First American National Bank, 937 S.W.2d 838 (Tenn. 1996) and its progeny, the TCPA generally does NOT reach the act of collecting a debt or enforcing a security interest. Pursell held that a repossession was not "trade or commerce" within the TCPA, and courts have extended the reasoning to foreclosure and collection conduct. The analysis is fact-specific: deceptive practices in the underlying consumer transaction (the original sale, financing, or solicitation) can still be actionable under the TCPA. So:

• Do not reflexively plead a TCPA claim for ordinary collection conduct — it is likely to be dismissed under Pursell.
• The FDCPA (federal) and the TCSA (state collection-licensing regime) are the right vehicles for collection-conduct claims.
• Reserve the TCPA for deception in the underlying transaction, and confirm there is no intervening authority before making any categorical statement.

The Tennessee Collection Service Act (TCSA)

The TCSA, Tenn. Code Ann. Title 62, Ch. 20 (§§ 62-20-101 to -124), licenses and regulates collection-service businesses through the Tennessee Collection Service Board:

• Licensing requirement — Tenn. Code Ann. § 62-20-105: no person may operate a collection-service business in Tennessee without a valid collection-service license. Check the Board's licensee roster for the plaintiff / its servicer.
• IMPORTANT LIMIT on the "unlicensed = void" theory — § 62-20-105 also provides that a debt collected by voluntary payment or final judgment may NOT be set aside solely because the collector lacked a license. So "the collector is unlicensed, therefore the judgment is void" is not a winning argument by itself; lack of license is better used as evidence of an unfair practice and as a pressure point, not as an automatic defense to the judgment.
• See also § 62-20-124 on conditions for assignment of accounts and for commencing litigation (verify current text and scope).

Statutes of limitations on the debt

Notes:

• The 6-year period at § 28-3-109 covers written contracts and open accounts, which captures most credit-card debt. The clock runs from breach, or for open/revolving accounts commonly from the date of last payment / last activity (fact-dependent — verify the account history).
• The 4-year UCC period at § 47-2-725 governs the sale of goods and can displace the 6-year contract period where the obligation is for goods. Identify the nature of the obligation.
• Sworn account (§ 24-5-107) is a procedural / evidentiary device, not a limitations period: a properly sworn account affidavit shifts the burden to the defendant to deny the account under oath. If the plaintiff relies on a sworn account, the defendant should verify-and-deny under oath to keep the account in dispute.

Evidence foundation the plaintiff must satisfy

To prove the debt and the assignment, a debt-buyer plaintiff must lay a business-records foundation:

• Tenn. R. Evid. 803(6) — business-records hearsay exception (records of regularly conducted activity, via a custodian or other qualified witness, or a self-authenticating certification).
• Tenn. R. Evid. 902 — self-authentication (certified copies of business records). Note: the exact 902(11)-equivalent subsection numbering should be verified against the current rule.

A common defense theme: the debt buyer's affiant has no personal knowledge of the original creditor's record-keeping and cannot lay a 803(6) foundation for records created by a different entity. Probe the affiant's basis of knowledge.

The five fact patterns

Most Tennessee consumer-debt-buyer cases fall into one of five patterns; the defense strategy varies by pattern.

Pattern 1 — Stale credit-card debt by an out-of-state debt buyer

A debt buyer sues a Tennessee consumer in General Sessions on a credit-card account whose last payment was 5-7+ years ago.

• SOL: the credit-card account is on or past the 6-year § 28-3-109 line. Pin down the date of last payment/activity.
• Chain of title: originated by the issuing bank → sold to a Tier-1 buyer → resold → sued by a downstream buyer. Each transfer needs Article 9 documentation tying this specific account to the plaintiff.
• § 20-6-104: if the plaintiff seeks a default, hold it to the authority-to-collect + at-least-one-document proof.

Pattern 2 — Debt buyer suing on the original creditor's contract

Plaintiff attaches the original creditor's cardholder agreement to its complaint but is not the original creditor.

• Standing: the cardholder agreement does not establish that this plaintiff owns this account.
• Assignment: demand the Article 9 bills of sale / assignments proving the chain of title to the plaintiff.

Pattern 3 — Collection suit on a medical debt

A collection agency sues for a medical balance.

• FCRA / accuracy — dispute and accuracy issues if the balance is also being reported.
• No Surprises Act (federal, eff. 2022) — certain balance-billing may be unenforceable; verify applicability.
• Foundation — the agency must still prove the amount and its authority to collect.

Pattern 4 — Default judgment already entered

Consumer was sued, often never properly served, and a judgment was entered (frequently surfacing via garnishment).

• 10-day de novo appeal to Circuit under § 27-5-108 if still within the window — the cleanest reset (see tn-post-judgment).
• Tenn. R. Civ. P. 60.02 relief from final judgment (mistake, excusable neglect, newly discovered evidence, fraud, void, or satisfied) where the de novo window has closed; void-judgment grounds carry no fixed outer limit, while (1)/(2) grounds carry a reasonable-time / one-year limit. Pair with a meritorious defense (SOL, chain of title, FDCPA).
• For a debt-buyer default, also raise § 20-6-104 — the plaintiff may have obtained the default without the required documentation.

Pattern 5 — Counterclaim under the FDCPA (and, narrowly, TCPA)

Consumer was sued; defenses plus a federal counterclaim:

• FDCPA — counterclaim for §§ 1692e (false/misleading representations), 1692f (unfair practices), or 1692g (validation) violations; 1-year SOL from the violation.
• TCPA — only where the deception lies in the underlying consumer transaction (mind Pursell); plead carefully.

Affirmative-defenses catalog

Plead all that apply in the answer (in Circuit on de novo appeal; in General Sessions, raise orally / by written notice as permitted):

1. Failure to state a claim — pleading does not allege the chain of title or specific account terms (Tenn. R. Civ. P. 12.02(6) in Circuit).
2. Statute of limitations — 6 years on contract/open account (Tenn. Code Ann. § 28-3-109) or 4 years on goods (§ 47-2-725).
3. Lack of standing / failure to prove assignment — plaintiff cannot prove it owns this specific account (Article 9).
4. Lack of privity between plaintiff and defendant.
5. Account stated — no agreed accounting between this plaintiff and this defendant.
6. Failure of consideration / lack of consideration.
7. Payment / accord and satisfaction / settlement.
8. Failure to satisfy the sworn-account device — account is denied under oath (Tenn. Code Ann. § 24-5-107).
9. § 20-6-104 — debt-buyer plaintiff lacks the required documentation (default-judgment context).
10. Identity theft (if applicable) — FCRA § 605B block.
11. Discharge in bankruptcy (if applicable).
12. FDCPA violation (raised as counterclaim, but note as a defense theme).

See references/affirmative-defenses.md for the annotated catalog.

Chain of title — Tennessee UCC Article 9

A debt buyer must trace ownership from the original creditor through every intermediate buyer to itself under Tennessee's enactment of UCC Article 9, with:

• Bill of Sale for each transfer;
• Assignment specifically identifying the account (account number / unique identifier); and
• Account-level data matching this consumer's account.

A bill of sale that references "an attached portfolio" without attaching it, or that says "all accounts sold on [date]" without tying to this account, is insufficient to prove ownership. The RFP bank in references/rfp-debt-buyer.md targets each link.

Discovery strategy

Discovery is where Tennessee forum mechanics dominate:

• In General Sessions there is no formal discovery as of right. Use informal document requests, cross-examination at the hearing, and — most importantly — preserve the de novo appeal.
• In Circuit (on de novo appeal or original Circuit filing) the full Tennessee Rules of Civil Procedure apply:
  1. First Set of Requests for Admission (Tenn. R. Civ. P. 36) — admissions on the elements (no contract, no assignment, no statement of account).
  2. First Set of Interrogatories (Tenn. R. Civ. P. 33) — chain of title, custodian identity, account-level data. (No statewide numeric cap — check the venue's local rules.)
  3. First Set of Requests for Production (Tenn. R. Civ. P. 34) — bills of sale, assignments, original agreement, periodic statements, account-level data, electronic records.
  4. Subpoena to the original creditor verifying the chain.
  5. Meet-and-confer, then Motion to Compel under Tenn. R. Civ. P. 37.

The full RFP / RFA / interrogatory banks live in the references. See tn-discovery for mechanics and tn-general-sessions for the forum-specific limits.

Composition

• For statewide format: tn-statewide-format
• For the dominant forum and de novo-appeal mechanics: tn-general-sessions
• For drafting the answer / first response: tn-first-30-days, tn-draft-motion
• For drafting the declaration: tn-draft-declaration
• For drafting the proposed order: tn-draft-order
• For drafting the notice / motion: tn-draft-note, tn-draft-motion
• For discovery and motion-to-compel mechanics: tn-discovery
• For setting aside a default / garnishment: tn-post-judgment
• For the 10-day appeal and other clocks: tn-deadlines
• For QC: tn-quality-check, tn-fact-check

References

• references/fdcpa.md — FDCPA, 15 U.S.C. § 1692 et seq., annotated
• references/reg-f.md — Regulation F at 12 C.F.R. pt. 1006
• references/fcra.md — FCRA furnisher / accuracy issues
• references/tn-collection-service-act.md — TCSA, Tenn. Code Ann. Title 62, Ch. 20 (licensing under § 62-20-105; § 62-20-124)
• references/tn-tcpa.md — Tennessee Consumer Protection Act (Tenn. Code Ann. § 47-18-101 et seq.) and the Pursell limit
• references/tn-section-20-6-104.md — the 2024 debt-buyer documentation statute
• references/tn-statutes-of-limitations.md — § 28-3-109 / § 47-2-725 / § 24-5-107 sworn account
• references/chain-of-title.md — Tennessee UCC Article 9 doctrine
• references/evidence-debt-buyer.md — Tenn. R. Evid. 803(6) / 902 foundation
• references/rfp-debt-buyer.md — Request for Production bank
• references/rfa-debt-buyer.md — Request for Admission bank
• references/interrogatories-debt-buyer.md — Interrogatory bank
• references/meet-and-confer-debt-buyer.md — M&C letter templates
• references/affirmative-defenses.md — annotated catalog
• references/key-cases.md — Tennessee debt-buyer case law
• references/online-sources-consumer-debt.md — canonical URLs