(a) The seller under any retail installment contract shall have no authority to collect any fees or charges for a policy of credit life insurance issued in connection with property purchased under a retail installment contract unless the consumer has specifically elected, evidenced by the consumer’s signature on such contract, to authorize the addition of the policy of credit life insurance.
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Terms Used In Tennessee Code 47-11-111

  • Contract: A legal written agreement that becomes binding when signed.
  • contract: means an instrument or instruments evidencing one (1) or more retail installment transactions entered into in this state pursuant to which a buyer promises to pay in installments for goods or services. See Tennessee Code 47-11-102
  • Property: includes both personal and real property. See Tennessee Code 1-3-105
  • seller: means a person regularly engaged in, and whose business consists to a substantial extent of, selling goods to a retail buyer. See Tennessee Code 47-11-102
  • Services: means work or labor furnished, whether or not furnished in connection with the delivery, installation, servicing, repair or improvement of goods and includes repairs, alterations or improvements upon or in connection with real property. See Tennessee Code 47-11-102
(b) If the consumer did not authorize the purchase of such insurance, the consumer shall notify the seller of any unauthorized charges for such insurance that are imposed under the retail installment contract within three (3) months of the initial billing for such insurance.
(c) If the consumer notifies the seller during the three-month period that such consumer did not authorize the purchase of such insurance and the seller cannot provide proof of authorization by such consumer, the seller shall refund an amount equal to a minimum of three (3) months’ charges for such insurance, including a refund of any penalty or interest assessed with respect to such charge, if any.
(d) If the consumer notifies the seller during the three-month period that such consumer did not authorize the services and the seller is able to prove authorization by such consumer, no refund shall be issued by the seller.
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