As part of Tennessee’s Debt Resolution Services Act (DRSA), anyone offering debt resolution services in Tennessee must apply for a new license in 2026. The Tennessee Department of Commerce & Insurance (TDCI) now regulates debt resolution licensing. 

These changes took effect on January 1, 2026. Continue reading to learn how to remain compliant this year.

Why Were These Changes Introduced?

Previously, the Tennessee Uniform Debt Management Services Act (UDMSA) regulated all debt settlement services. However, it focused on traditional debt management models and was too broad to address debt settlement negotiations effectively. 

The new DRSA establishes a dedicated framework that enhances consumer protections by setting stricter standards for providers. This reduces deceptive and fraudulent debt resolution practices.

Who Needs a License?

The Tennessee Department of Commerce and Insurance requires a license for providers that offer debt resolution services, such as debt negotiation, credit counseling, and debt settlement. 

However, you may be exempt if you fall under any of these categories:

• Licensed Tennessee attorneys providing debt resolution services within an attorney-client relationship

• Account service providers performing only account administration functions

• Banks

• Certified public accountants

• Qualifying nonprofit entities

• Creditors negotiating on their own behalf

• Government officers 

• Employees of a licensee who do not perform any direct debt resolution services

Note: Existing licenses issued under the Uniform Debt Management Services Act are valid only for non-debt resolution activities. You must obtain a new license from the TDCI before you can offer debt resolution services.

What Are the New Licensing Requirements?

The new Tennessee debt resolution licensing process is similar to the previous requirements under the UDMSA. To apply, you’ll need to submit the following materials through the CORE licensing system:

• Financial statements from the past two fiscal years

• Copy of your consumer agreement forms and fee schedules

• Evidence of accreditation or certification by an approved independent accrediting body or national trade group

• $50,000 surety bond

• Fingerprinting and background checks for executive officers

All licenses are valid for two years. However, you’ll typically need to renew your surety bond annually. 

Did My Surety Bond Amount Change?

No, the Tennessee Department of Commerce and Insurance still requires a $50,000 surety bond for all applicants. A debt management services provider bond protects consumers from unfair or deceptive debt management practices. 

How Do I Get a TN Debt Resolution Bond? 

You must purchase your bond from an authorized surety company. As an online agency, SuretyBonds.com works with the top surety providers in Tennessee to find you the best pricing. 

Apply online for your free Tennessee debt resolution bond quote. Qualified applicants typically pay just $750–$1,000. 

Next Steps

Since these changes are already in effect, you must comply with the new license requirements as soon as possible to avoid penalties and delays.

For any questions, refer to the TDCI website or call 1 (800) 308-4358 to speak with one of our surety experts.