►
Description
House Banking & Consumer Affairs Subcommittee House Hearing Room 3
A
D
A
Great
well,
thank
you
all
for
being
here.
We
got
a
couple
of
great
presentations
today,
but
got
a
little
housekeeping
to
do
too,
but
first
before
we
do
that,
do
we
have
any
personal
orders
or
announcements
from
any
of
the
members
and
we
just
lost
another
member
but
anyway,
okay.
Well,
let's
go
here.
We
go
on
item
one
house
bill.
1996
has
been
taken
off
notice.
A
A
C
C
We
call
that
regulatory
balance
and
we
simply
go
about
doing
that
by
telling
regulation
to
the
merits
of
each
institution.
We
want
to
avoid
a
one-size-fits-all
approach.
We
do
four
basic
core
activities.
First,
by
application
we
determine
who
enters
the
banking
system,
second
examinations,
to
determine
the
condition
of
institutions,
whether
in
compliance
with
state
and
federal
laws,
by
enforcement
actions,
we
deal
with
issues
and
consumer
education
is
an
absolute
key
to
a
safe
and
sound
banking
system.
C
With
regard
to
the
condition
of
banks
and
credit
unions,
the
great
majority
of
our
institutions
are
healthy.
Continue
serving
the
economic
needs
of
the
state,
our
initial
response
to
covet
19
was
to
pause
our
exams
for
a
brief
time
to
give
institutions
the
opportunity
to
focus
on
their
communities,
and
they
did
that.
C
We
re-established
our
exam
program
completely
off-site
which
reduced
burden
and
cost
to
the
industry,
because
we
reduce
travel
costs
once
we
complete
the
downsides
of
our
office
space
in
the
tennessee
tower
and
add
those
savings
to
the
travel
savings.
We've
established
we'll
see
roughly
one
million
dollars
in
savings
on
an
annual
basis
when
health
concerns
are
not
a
primary
concern
for
institutions
and
regulators
alike.
C
C
The
growth
is
projected
to
continue,
especially
on
the
trust
side,
where
tennessee
trust
law,
along
with
our
balanced
regulatory
approach,
has
trust
professionals
and
other
interested
parties
looking
to
possibly
establish
trust
operations
in
tennessee,
and
this
state
is
now
home
to
three
of
the
largest
banks
in
the
country.
It's
not
only
the
size
of
these
institutions
spread
over
multiple
states,
but
the
complexity
of
operations
and
activities
that
we're
working
hard
to
address.
C
Our
regulation
approach
is
tailored
to
facilitate
economic
development,
not
hold
it
back.
Let
me
provide
just
a
few
thoughts
on
the
regulation
of
thousands
of
non-deposit
companies.
As
you
know,
about
eight
years
ago,
we
implemented
for
the
first
time
a
risk-focused
examination
of
non-deposit
companies
based
on
a
variety
of
risk
factors.
We
rate
these
companies
low,
moderate
or
high
risk
for
those
companies
that
are
low
risk.
We
can
push
out
the
frequency
of
exams
to
put
more
of
a
focus
on
companies
that
show
a
higher
risk
potential
to
consumers.
C
C
C
Some
of
this
is
due
to
the
covet
environment.
Money
transmission
and
mortgage
saw
large
increases
in
license
counts
over
the
five-year
period
mortgage
loan
originators
have
doubled
since
2016
to
over
20
000..
On
the
other
hand,
payday
lenders
and
title
pledge
lenders
lost
well
over
500
locations
in
tennessee
over
the
last
five
years.
C
We
want
to
continue
to
build
on
the
tema
relationship
through
the
further
development
of
cyber
exercises
with
financial
institutions.
We
want
to
set
cyber
forums,
get
feedback
from
banks
and
credit
unions
later
this
year.
As
to
the
I.t
challenges
that
the
industries
face,
we
want
to
enhance
our
examiner
training
and
explore
tools
that
would
allow
us
to
monitor
it
risk
on
the
non-deposit
side.
C
C
C
C
C
C
Our
jurisdiction
is
limited
to
the
fiat
aspect
of
these
transactions
but,
as
I
said,
we're
reviewing
potential
changes
to
our
money,
transmitter
laws
to
give
more
clarity
for
money,
transmitters
and
our
department
going
forward.
The
community
banking
sector
within
the
state
is
beginning
to
think
about
customer
demand
for
digital
asset
access,
primarily
through
partnerships
with
established
fintechs.
C
Some
of
these
third
parties
might
be
licensed
by
the
department
as
money.
Transmitters
banks
have
also
explored
opportunities
to
leverage
blockchain
technology,
and
I've
also
heard
some
interest
from
credit
unions
as
well
at
a
very
basic
level.
I've
had
a
few
bankers
mention
to
me
that
they've
been
approached
by
perhaps
a
few
customers
wanting
the
bank
to
help
buy,
sell
or
hold
cryptocurrency.
C
There's
also
numerous
potential
benefits
as
well,
such
as
low
cost.
Easy
transactions
serving
the
unbanked
and
being
a
potential
hedge
against
inflation,
and
we're
also
going
to
be
very
interested
in
hearing
what
our
law
enforcement
partners
have
to
say
about
this
area.
So
our
department
is
constantly
reviewing
this
fast-moving
area,
watching
what
the
federal
government
is
doing.
C
We
all
we're
also
having
a
dialogue
with
our
institutions
to
hear
what
they
may
be
considering
in
this
space.
Our
balanced
regulatory
approach
applies
to
digital
asset
innovation
as
well.
We
want
to
work
with
our
institutions
as
they
seek
to
innovate
in
this
space,
but
do
it
in
a
way
to
protect
consumers
and
confidence
in
the
banking
system,
and
with
that
I'm
happy
to
try
to
answer
your
questions.
A
A
One
week
item
number
three
was
roll
two
weeks
so
now
we'll
go
back
out
of
session
and
we'll
take
any
questions
from
anybody
and
don't
get
up
and
leave
and
tell
me
no
I'm
kidding
now
we
take
any
questions
from
anyone
on
the
panel
here
that
you
have
for
the
commissioner.
Do
we
have
anybody
on
the
list?
E
Thank
you,
mr
chairman,
and
thank
you,
commissioner,
for
being
here.
It's
always
a
pleasure
to
see
you
and-
and
I
want
to
just
testify
in
front
of
this
committee.
He
does
a
wonderful
job
in
regulating
our
banking
industry
and
I
hope
he'll
stay
in
this
position
for
a
long
long
time.
So,
but
I
do
have
a
couple
of
questions.
E
Could
you
tell
me
kind
of
what
and
with
what
kind
of
ranges?
If
I
could
ask
how,
in
a
government
world,
can
you
get
qualified
men
and
women
to
come
to
work
for
you
versus
the
private
sector,
competition
for
that
talent,
because
it's
it
is
a
specialty,
especially
in
the
I.t
side,
and
so
I
don't
know
what
range
of
salary
you're
allowed
in
your
department
to
go
out
and
hire
the
qualified
talent.
But
are
you
facing
constraints
in
getting
talent
in
a
government?
Salary
range
world.
C
We
we
do
have
challenges,
that's
a
great
question
and
it
it
becomes
an
even
greater
question
for
us
just
because
of
the
growth
in
the
banking
system.
You
know
I
mentioned
in
in
2014
the
combined
assets
of
banks
and
trust
under
our
supervision,
a
little
bit
over
70
billion
at
the
end
of
last
year,
450
billion
and
with
the
cyber
threat
levels
that
seem
to
be
increasing
all
the
time
we
are
and
we
have
hired
additional
I.t
staff.
C
C
C
C
So
I
would
just
simply
say
that
it's
it's
probably
more
challenging
now
than
ever,
and
in
particular
in
the
the
bank
examination
error
that
that's
our
most
challenging
place.
We
have,
I
think,
on.
Well,
I
think
the
median
experience
level
for
bank
examiners
is
roughly
eight
years
in
the
other
areas-
credit
union
and
non-bank-
it's
like
16
years,
so
we
have
got
to
do
a
better
job
of
not
only
hiring
but
retaining
because
it
takes
four
to
five
years
to
train
a
bank
examiner
so
that
they
can
fully
meet
their
responsibilities.
C
C
E
E
I'm
gonna
call
it
action,
but
could
you
bring
me
up
to
date
on
where
that
stands,
and
do
you
see
I'm
gonna
call
it
any
concern
with
that
that
ever
becoming
large
scale?
Obviously
we
know
our
friends
in
the
credit
union
do
not
pay
any
state
in
federal
income
taxes,
corporate
excise
taxes
and
and
therefore
a
large-scale
movement
in
that
direction
certainly
would
have
large
revenue
effects
to
the
state,
and
so
it
certainly
should
be
a
concern.
B
I'll
answer
anything,
mr
chairman,
I
knew
better
than
to
get
between
my
colleague
and
the
banking
commissioner.
Here
he
said
he
he
lights
up
whenever
you
come
come
to
to
visit
with
us,
mr
commissioner
and
I'll
I'll
have
to
say
that
I
have
figured
out
that,
whenever
you're
in
the
room,
the
the
debate
over
who's,
the
smartest
fella
in
the
room,
usually
ends
because
we
all
know
it's
you
with
regards
to.
B
Facilities
throughout
the
state
to
send
money
back
and
forth
internationally,
and
it
creates
a
whether
it's
a
security
risk
or
a
strain
on
the
system
or
or
whatever,
and
I
know
that
you
and
I
have
had
a
conversation
with
regards
to
this.
But
at
the
same
time
your
department
has
done
some
monitoring
of
wire
activity.
C
In
the
last
few
years,
probably
last
six
seven
years,
the
number
of
those
companies
have
doubled.
A
number
of
those
companies
are
engaged
in
exchange
of
virtual
currency
for
virtual
currency
or
virtual
for
fiat,
meaning
the
dollar
and
I'm
you
know,
we've
shared
information
with
regard
to
the
number
of
those
transactions
which
we're
now
reviewing.
I
don't
have
those
numbers
in
front
of
me
at
this
moment,
but
we
can
provide
that
to
the
committee.
C
C
C
At
the
same
time,
what
can
be
done
from
an
efficiency
standpoint
to
help
banks
and
others
be
able
to
do
it
in
in
the
most
efficient
and
cost
effective
way
possible,
because
it
doesn't
do
anyone
any
good
if
the
regulation
of
that
activity
is
so
burdensome
and
so
costly,
it
gets
in
the
way
of
you
know
national
security,
which
is
you
know,
one
of
the
prime
reasons
for
all
this.
So
we
do
look
at
the
non-deposit
area
for
for
that
kind
of
activity
and
to
understand
how
how
do
they
go
about
compliance?
B
B
With
regards
to
our
unbanked
the
size
of
the
unbanked
community
throughout
the
state,
are
you
seeing
that
grow
shrink?
What
what
kind
of
trends
are
we
seeing
there
and
then
last
thing?
I
would
ask
about
it.
Well,
the
other
thing
I'll
ask
you
offline,
but
but
if
you
could
address
the
unbanked
community,
that'd
be
great.
Thank
you.
C
C
That's
an
impact
to
economic
conditions
when
you
have
a
significant
number
of
folks
that
are
not
banked.
So
you
know,
we've
talked
about
this.
We've
talked
about
it
with
a
number
of
other
entities
as
to
what
can
be
done.
We
see
some
good
trends,
but
when
you
see
double
digits
there
in
west
tennessee,
it's
concerning.
B
Thank
you,
mr
chairman,
and
commissioner,
it's
always
great
to
hear
from
you
a
moment
ago
on
one
of
the
slides
you
mentioned
that
there
has
been
a
pretty
good
increase
in
the
number
of
mortgage
loan
originators.
Is
that
simply
organic?
I
mean?
Are
there
that
many
people
that
are
getting
into
the
profession
or
did
something
change?
I
know
historically
folks
that
worked
at
a
bank
were
not
required
to
become
mortgage
loan
originators.
Are
they
now
required
to
do
that,
or
is
that
just
an
organic
increase.
C
You
know
the
lowering
of
rates
there's
been
a
lot
of
discussion
as
to
what
the
cold
environment
has
has
done
from
a
mortgage
standpoint:
the
sale
of
homes,
the
low
inventory,
just
a
lot
of
activity,
I
think,
has
produced
a
number
of
an
increase
in
licensees
and
increase
in
mortgage
loan.
Originators
now
we're
we're
going
to
be
watching
to
see
what's
going
to
happen
going
forward,
is
any
of
that
activity
going
to
maybe
drop
off
a
little
bit
as
interest
rates
increase.
C
B
Chairman
boyd,
thank
you,
mr
chairman,
and
a
follow-up
to
that.
I,
I
was
brought
a
piece
of
legislation
this
year
with
regard
to
mortgage
loan,
originators
that
they
requested
to
be
able
to
work
remotely,
and
then
there
was
some
conversation
where
we
thought
they
already
could,
and
so
I
know
that
the
the
the
folks
that
brought
that
to
me
have
been
in
discussions
with
you.
Could
you
speak
to
that
for
just
a
moment.
C
Sure
you
know,
we've
issued
guidance
some
time
ago,
that
really
staff
employees
of
all
of
our
non-deposit
companies
should
be
able
to
work
from
home,
and
that's
that
continues
to
be
our
position
so
we're
in
contact
with.
I
think
the
folks
that
you're
referring
to
now
to
issue
a
bulletin
for
for
clarification
going
forward,
but
that
remains
that
remains
our
position.
Thank.
B
B
Thank
you,
mr
chairman,
commissioner,
for
somebody
that's
checked
their
coinbase
account
multiple
times
during
this
conversation
already,
when
you
started
talking
about
cryptocurrency,
I
kind
of
grabbed
my
attention.
I
know
it's
an
ongoing
debate
throughout
a
lot
of
states,
but
if,
if
tennessee
eventually
had
a
regulatory
framework
in
place
for
cryptocurrency,
is
that
something
that's
going
to
attract
that
industry
to
the
state
or
detract?
And
that
might
be
something
that
is
debatable
right
now,
but
just
wanted
to
see
what
your
opinion
was.
C
C
C
One
in
particular
that's
become
very
public,
the
association
that
they're
working
through-
and
that
gives
us
a
really
a
front
row
view
of
what's
happening
in
this
area
and
certainly
working
with
federal
regulators
in
on
that
on
that
particular
activity.
So
my
view
of
what's
happening,
there's
a
lot
of
folks
that
are
trying
to
figure
out
what
should
the
regulatory
infrastructure
look
like
and
that
hasn't
been
decided
yet
in
washington
with
the
change
of
leadership
in
some
of
these
federal
agencies.
C
F
Thank
you,
commissioner.
I
appreciate
your
your
testimony
always
being
here
and-
and
I
echo
my
colleagues
interest
in
in
blockchain
and
cryptocurrency
technology
and
and
I
guess
just
a
little
bit
of
a
commentary
that
may
be
a
follow-up
question,
but
my
concern
is:
is
somebody
who
represents
nashville
and
we
continue
to
want
to
try
to
attract
in
our
state.
F
You
know
strong
technology
companies,
you
know
those
that
are
interested
in
fintech
and
I
think
that
continues
to
create
a
robust
economy
and,
as
you
see
other
states,
I
know
wyoming
has
sort
of
been
a
leader
as
far
as
embracing
cryptocurrency
and
blockchain
technology,
texas,
arizona.
As
a
matter
of
fact,
there
was
a
legislator
in
arizona
that
just
proposed
legislation
to
recognize
bitcoin
as
legal
tender.
F
F
But
I
just
I
guess
you
know
again
feel
free
to
respond
if
you'd
like,
but
I
just
hate
to
say
that
we
want
to
wait
on
washington
dc,
and
I
realized
that
you
know
there
are
some
things.
We
definitely
need
to
wait
on,
but
I
also
want
to
make
sure
that
our
state
continues
to
remain
attractive
to
these
companies
that
are
looking
at
these
technologies
and
looking
at
different
opportunities.
F
For
example,
I
know
the
mayor
of
jackson,
you
know,
has
been
very
outspoken
about
wanting
to
embrace
bitcoin
and
cryptocurrencies
and
pay
employees,
and
you
know
perhaps
allow
that
city
to
invest
in
cryptocurrencies.
So
anyhow,
just
just
a
commentary,
if
feel
free,
to
respond.
No
real
question,
but
just
wanted
to
make
that
comment.
C
Sure-
and
I
appreciate
those
comments,
the
one
thing
that
the
main
thing
that
I
should
say
about
this
area
is
that
our
jurisdiction,
of
course,
is
is
just
over
financial
institutions.
So,
as
far
as
what
the
business
community
as
a
whole
seeks
to
do,
you
know
that's
that's
outside
of
my
jurisdiction,
but
with
respect
to
banks
and
credit
unions
and
money.
Transmitters,
then
we're
working
with
our
federal
partners
there.
So
I
I
don't
want
my
comments
to
be
taken
that
we're
trying
to
hold
back.
C
C
So
there
are
things
happening
and
we're
walking
down
that
road
with
them,
but
everybody's
learning
together
and
we're
just
trying
to
make
sure
that
you
know
we
don't
impact
the
confidence
in
the
banking
system,
but
we
do
allow
innovation
to
go
forward.
That
is,
you
know
it's
a
delicate
balance
sometimes,
but
that's
we're
with
you
as
far
as
wanting
our
institutions
to
be
able
to
be
involved
in
this
and
we're
just
all
trying
to
do
it
in
the
most
prudent
way
possible.
F
Thank
you
miss
chair,
and
I
and
I
appreciate
those
comments.
Clearly,
you
know
any
position
you
take
or
thoughts
you
have
on
it
you're
a
clear
leader
in
our
state
when
it
comes
to
anything
financial
and
banking.
I
just
hope
that
we
can
work
together,
collaborate
with
other
partners
in
the
state
of
tennessee.
You
know
I'd
love
us
to
really
dig
into
this
issue
and
I'm
biased.
F
G
You
and
in
regard
to
crypto
I
I
worry,
there's
such
advantages
for
the
united
states
of
america
to
have
the
dollars
the
world's
reserve
currency,
and
I
fear
that
we're
unwittingly
shooting
ourselves
in
the
foot
by
pursuing
the
crypto
and
all
of
that.
It's
who
knows
what
the
future
would
be,
but
I'm
just
curious.
You
know
your
department,
you
know,
protects
depositors
and
makes
sure
institutions
run
well.
G
C
C
Looking
at
some
of
these
issues
from
a
security
standpoint,
so
there
there's
just
there's
tremendous
discussion
going
on
with
respect
to
where
the
jurisdictional
line
should
be
established
and
what
these
products
really
are.
At
the
end
of
the
day,
federal
reserve
has
just
recently
put
out
a
report
discussing
a
digital
currency,
so
it
I
just
can't
overstate
how
much
activity
is
going
on
from
a
lot
of
different
sources
and
looking
at
these
issues
and
then
trying
to
come
up
with
an
approach
that
makes
sense.
A
All
right,
thank
you.
I
have
a
couple
real,
quick.
Well,
I
hope
they're
real
quick
questions
and
I
just
wanted
to
wait
till
everybody
else
got
through,
but
on
the
on
going
back
and
representative
powell
alluded
to
this
a
while
ago
about
the
financial
institutions
that
have
been
moving
to
nashville
and
my
idea
is
always
we
wanted
to
become
the
wall
street
of
the
south.
A
C
A
Thank
you.
Thank
you.
We're
going
to
try
to
keep
doing
that
too,
as
as
much
as
we
can.
The
other
thing
you
mentioned
too,
you
were
talking
about
cyber
attacks
and
different
breaches
and
everything
and
how
much
they've
increased
over
do
you
have?
I
know
you
don't
need
just
a
number,
but
do
you
have
just
roughly
an
idea
like
over
the
last
year
or
so
how
much
that
hasn't
gone
up
two-fold
or
three-fold
or
whatever
you
know.
I
know
I
know
that's
a
big
problem
everywhere.
C
A
All
right,
thank
you.
Yeah
I've
got
some
money
coming
from
africa
too.
I
need
to
talk
to
you
about.
I
got
an
email,
so
I'm
sure
that's
a
legitimate
source.
You
were
talking
about
the
wire
or
we're
talking
about
the
wires.
A
while
ago,
I
think
represent
chairman
vaughn
was
talking
about
the
wire
transfers
and
everything
is
there
a
way,
because
I
know
one
one
thing
that's
concerning
about
that
is
tax
revenue
leaving
our
state.
You
know
that
that
may
just
be
sending
it
out.
A
I
mean,
I
don't
know,
I'm
sure,
there's
some
coming
into
our
state
versus
some
that
are
going
out
of
our
state
too.
Do
we
ever
have
a
get
an
estimate
of
how
much
actual
tax
revenue
that
would
be
lost
or
or
that
that
amount
of
that
difference
or
whatever
each
year
that
or
for
the
wire
over
the
wiring?
You
think
do
we
have
anything
like
that?
I
don't.
A
And
I
think
that's
all
I
had,
but
I
really
we
really
appreciate
everything
you
do
and
thank
you
for
coming
here
and
and
thank
you
for
coming
every
year
and
giving
us
an
update
and
if
we
have
no
other
other
questions,
we're
going
to
allow
you
to
go
back
and
keep
working
for
the
state
of
tennessee.
Thank
you
for
all.
You
do
appreciate
it.
Thank.
C
E
A
Okay,
next,
we
have,
if
I
can
find
my
list
here
there
it
is.
Next
we
have
claire
marcells
from
the
division
of
consumer
affairs
to
give
the
2021
year-end
report
and
thank
you
for
coming.
Today.
We
have
some
handouts,
but
I
think
we're
just
going
to
email
those
to
everyone.
If
that's
okay,
I've,
I
think
we're
still
under
the
no
handout
rule.
I
thought
we
had
gotten
over
that,
but
I
need
to
need
to
find
out
for
sure,
but
until
we
do
we're
just
going
to
go
ahead
and
email
those
out
to
everyone.
D
We
are
a
part
of
the
attorney
general's
office
and
our
mission
is
to
protect
consumers
and
legitimate
businesses
from
deceptive
business
practices,
scams
and
fraud
in
the
marketplace.
We
do
that
in
three
main
ways
we
serve
as
tennessee's
clearinghouse
for
consumer
complaints.
We
also
offer
a
complaint
mediation
program
to
help
resolve
disputes
between
consumers
and
businesses,
and
then
we
also
conduct
statewide
education
and
outreach
to
teach
tennesseans
how
to
be
savvy
consumers
and
avoid
scams.
D
Before
I
go
into
talking
a
little
bit
more
about
the
complaint
mediation
program,
I
did
want
to
mention.
As
you
may
know,
we
there
was
a
change
in
state
law
that
moved
the
division
of
consumer
affairs
from
the
department
of
commerce
and
insurance
to
the
attorney
general's
office,
and
that
happened
in
fall
of
2019.
D
The
intention
of
that
move
was
to
try
to
strengthen
consumer
protection
by
bringing
together
my
team,
which
does
complaint
intake
and
pairing
them
better
with
the
attorney
general's
office
investigators
and
attorneys
that
enforce
the
consumer
protection
laws
for
the
state,
not
long
after
we
did
this.
We
were
already
seeing
results
once
we
had
kind
of
settled
in.
We
went
ahead
and
began
a
project
where
we
were
partnering
with
a.g
investigators
to
help
follow
up
with
businesses
that
did
not
respond
to
consumer
complaints
and
within
just
a
few
months
of
doing
that
initiative.
D
We
they
had
already
recovered
quite
a
bit
of
funds,
almost
fifty
thousand
dollars
of
funds,
additional
funds
recovered
for
complainants
through
that
project,
and
we
continue
to
do
that
project
and
we
continue
to
see
success
from
it.
So
that
was
phase
one
of
the
transition
over
to
the
attorney
general's
office
phase
two
involved.
D
Let
me
move
it
over
for
you
phase
two
involved
trying
to
get
our
complaint
system
over
from
commerce
and
insurance,
so
we
moved
our
staff
over,
but
then
we
still
had
our
complaint
system,
which
was
housed
at
commerce
and
insurance.
We
still
were
having
to
utilize
their
online
complaint
portal
and
some
of
their
intake
staff.
While
we
tried
to
prepare
a
plan
to
house
those
complaints
within
the
attorney
general's
office,
so
that
took
some
time
working
with
it
staff
to
prepare
that
system.
D
But
in
july
of
2021
we
were
able
to
move
all
that
electronic
complaint
data
over
to
the
ag's
law
based
system.
We
then
launched
a
complaint
portal
under
the
ag's
website
to
where
we
could
take
in
consumer
complaints
online,
and
then
we
were
able
to
hire
new
staff
to
replace
the
duties
that
were
being
done
through
commerce
and
insurance.
We
had
maintained
an
interagency
agreement
with
them
to
while
they
provided
those
services.
D
While
we
were
getting
settled,
but
as
of
july
2021,
we
are
now
completely
under
the
aegis
umbrella
and
we
are
very
thankful
for
our
partners
at
commerce
and
insurance
who
helped
us
throughout
that
transition
and
supported
us.
So
just
wanted
to
provide
that
brief
update
but
I'll
circle
back
to
the
complaint
mediation
program.
As
mentioned,
we
service
the
clearinghouse
for
consumer
complaints.
So
we
offer
a
complaint
mediation
program.
D
If
a
consumer
has
a
complaint
against
a
business
such
as
they've
purchased
a
product
and
that
product
is
not
performing
as
it
was
advertised,
they
can
file
a
complaint
with
our
office
and
we
will
mediate
that
complaint.
Our
consumer
specialist
will
send
the
complaint
to
the
business.
Ask
them
to
respond
when
they
do
respond,
we'll
share
that
response
with
the
complainant.
They
have
an
opportunity
to
provide
a
rebuttal
or
additional
concerns,
and
we
offer
this
as
a
way.
D
If
it's
determined
that
the
complaint
is
outside
of
our
jurisdiction,
we
will
try
to
get
that
complaint
referred
to
the
appropriate
agency,
especially
if
there's
regulatory
oversight,
a
lot
of
our
common
referrals,
go
to
commerce
and
insurance,
either
to
their
insurance
division
or
to
their
regulatory
board
division.
We
also
make
quite
a
bit
of
referrals
to
the
department
of
financial
institutions,
as
well
as
the
department
of
health
and
many
other
agencies,
including
federal
agencies
such
as
the
consumer
financial
protection
bureau,.
D
I
want
to
talk
briefly
about
covet
issues.
Of
course
you
know
when
the
pandemic
first
started
in
2020,
we
were
seeing
a
lot
of
complaints
about
price
price
gouging.
Both
things
from
health
products,
hand
sanitizer
mass
things
like
that,
as
well
as
groceries
and
items
such
as
that
the
other
big
category
we
saw
were
refund
disputes
from
consumers
who
either
had
purchased
things.
Maybe
it
was
travel
concert
tickets
things
like
that
that
were
either
they
were
not
able
to
go
to
because
of
covet
or
the
events
were
cancelled
because
of
covid19.
D
The
the
issue
shifted
a
little
bit
in
that
we
just
saw
our
general
complaint
categories
rise
significantly
with
our
monthly
complaint
totals
nearly
doubling
in
the
first
half
of
the
second
half
of
last
year.
The
issues
began
to
that
we
began
to
see
were
more
things.
Landlord-Tenant
disputes
definitely
rose
during
that
time
from
issues
such
as
evictions,
rent
increases
also
just
issues
with
not
being
able
to
get
things
repaired
in
rental
properties,
and
we
had
a
lot
of
mold
complaints
as
well
as
businesses
responded.
D
D
This
chart
here
illustrates
our
complaints
received
by
month
last
year,
as
you
can
see,
there's
quite
a
bit
of
difference
in
the
second
half
of
the
year,
as
I
mentioned
in
july,
is
when
we
we
launched
our
complaint
form.
We
worked
to
make
sure
that
our
complaint
form
was
easy
to
use
for
consumers
easy
for
them
to
fill
out
and
we've
seen
a
steady
increase
since
since
that
time
of
complaints
coming
in
you'll
also
note
anytime,
we
see
issues
or
times
within
the
year
where
consumers
are
getting
an
influx
of
funds.
D
So
in
march
you
see
an
uptick.
Sometimes
when
consumers
get
their
tax
refund
they're
going
to
be
making
bigger
purchases
they're
going
to
maybe
be
buying
a
car,
maybe
doing
some
remodeling
around
the
home,
and
we
generally
will
see
complaints
we'll
see
an
uptick
a
little
surge
during
those
times.
So
we'll
see
that
too,
when
stimulus
payments
may
have
come
in
any
time
like
that
also,
there
was
also
a
surge.
D
In
2020,
we
received
a
total
of
5
561
consumer
complaints
that
is
significantly
higher
than
the
past
years.
That
you
see
listed
there
also
listed,
are
the
top
10
complaint
categories
and
in
the
handout
that
chairman
mentioned.
That's
where
you'll
see
a
more
detailed
description
of
those
categories,
home
improvements,
home
repair
and
home
warranty,
or
you
know,
home
improvement
issues
that
consumers
have
what
we
see
a
lot
of
times.
Is
they
hired
someone
to
do
a
home
improvement
project,
a
remodeling
project
in
the
home
and
paid
them,
and
either
the
the
work
was
never
done?
D
It
was
not
done
properly,
they
damaged
something
in
the
home.
We
see
that
quite
a
bit
and
that's
a
big
category
and
also
the
home
service
warranties.
We
see
quite
a
bit
of
complaints
that
come
in
from
people
that
have
home
service
warranties
that
they
think
are
going
to
cover
an
appliance
replacement
or
something
like
that,
and
when
that
doesn't
happen,
that
they
file
a
complaint
on
those
issues
landlord
tenant,
I
mentioned
as
well
that
we've
seen
a
rise
in
those
issues.
D
Health
services
and
product
products
is
where
people
have
usually
billing
disputes
with
doctor's
appointments
or
dentist
appointments
that
they
had
or
dentist
services.
That's
the
main
thing
in
that
category
with
those
type
of
building
dispute
complaints,
but
but
the
others
here
like
I
said
you
can
look
through
those
handouts
and
see
the
description
of
those
categories.
I
will
note
imposter
scams,
which
is
theirs.
D
Enforcement
and
restitution,
so,
as
I
mentioned,
part
of
the
the
move
to
the
attorney
general's
office
was
to
have
us
pair
as
the
complaint
intake
side
of
things
to
pair
us
better
with
the
enforcement
side,
which
is
the
consumer
protection
division
of
the
attorney
general's
office.
And
that's
where
the
attorneys
that
enforce
the
tennessee
consumer
protection
act
are
housed,
and
so
anytime,
we
see.
We
note
a
pattern
of
complaints
in
what
we're
seeing
or
any
type
of
potential
violation
of
the
tennessee
consumer
protection
act.
D
D
And
just
last,
but
certainly
not
least,
are
our
consumer
education
highlights
and,
of
course,
like
many
agencies,
we
had
to
shift
the
way
that
we
do
outreach.
We
we
do
quite
a
bit.
Historically,
we
do
quite
a
bit
of
in-person
outreach,
especially
to
our
older
adult
audience,
so
we
like
to
go
and
actually
do
presentations,
so
we
have
to
had
to
kind
of
pivot
the
way
that
we
did
that
because
of
the
pandemic,
but
we
were
able
to
partner
more
when
we
had
to
do
more
virtual
presentations.
D
We
decided
to
try
to
partner
more
with
the
agencies
that
were
already
touching
those
communities,
so
we
did
presentations
to
aps.
We
also
did
several
cities
have
financial
consumer
protection
committees
already
established,
so
we
reached
out
to
those
committees
and
did
presentations
as
well.
We
did
some
recordings
for
some
of
the
financial
educators
that
are
trained
through
the
university
of
tennessee.
D
In
addition,
we
tried
to
con
distribute
materials
in
the
wake
of
some
of
the
natural
disasters
that
happened,
including
the
waverly
floods,
and
then
we
also
worked
with
our
partners
at
the
legal
aid
society
to
try
to
distribute
resources,
especially
about
covet
the
housing
issues
that
we
talked
about
with
the
rental
issues
that
we've
seen
the
landlord-tenant
issues
that
we've
seen.
We
work
with
the
legal
aid
society
to
create
some
materials
and
distribute
those
to
consumers
to
help
with
those
issues.
A
F
Thank
you
for
being
here.
I
really
appreciate
it.
I
had
a
question
about
the
jurisdiction.
I
know
you
touched
on
that,
but
you
know
I
continue
to
hear
from
constituents
that
a
lot
of
different
scams
and
things
are
either
now
coming
through
texts.
You
know
people
are
getting
texts
which
I
realized,
that
kind
of
regulations
on
those
and
different
laws,
obviously
emails.
Now
these
these
phone
calls
is
that
within
your
jurisdiction
or
because
so
much
so
many
of
those
there's
no
way
to
figure
out
exactly
if
they
come
from
within
tennessee
or
not.
D
Very
question,
and
so
the
issue
is
certainly
in
that
many
of
these
scams
are
originating
from
overseas,
so
it's
very
difficult
for
local
and
state
authorities
to
pinpoint
the
perpetrator
and
do
anything
about
that.
So
that's
that's,
certainly
frustrating
in
a
from
a
consumer
standpoint,
but
it's
very
difficult
for
us
to
figure
out
where
they're
going.
You
know
where
they're
coming
from
and
then
they
can
pop
up
and
and
we're
it's
just
difficult
to
try
to
figure
out
where
the
perpetrator
is
in
those.
D
So
as
far
as
jurisdiction,
we
do
try
to
encourage
folks
to
file
with
the
federal
trade
commission
to
let
them
know
about
the
scam
as
well.
But
it's
really
more
of
a
preventative
thing
for,
for
our
side
is
trying
to
teach
consumers
what
they
can
do
to
avoid
being
scammed
and
that's
tricky,
especially
now
that
there
are
different
methods
that
the
scammers
are
using
to
do
that.
But
we've
gotten
to
where
we
encourage
folks
to
not
answer
the
phone.
If
they
don't
recognize
the
number.
D
That's
calling
to
be
aware
of
any
links
that
they're
sent
telling
them
to
click.
This
link
to
provide
more
information,
especially
links
that
are
going
to
be
asking
for
information
of
their
personal
or
financial
information,
but
it's
certainly
an
ongoing
issue
and
jurisdiction-wise.
It's
difficult
for
local
and
state
authorities
to
do
something
about
those
issues
when
a
lot
of
them
are
happening
from
from
overseas.
A
D
Sure
so
over
there
we
would.
We
would
often
meet
with
the
attorney
general's
office,
but
it
makes
it
so
much
easier
for
us
to
actually
be
in
the
same
department
with
them.
We're
able
to
channel
information
to
them
much
more
quickly
about
the
complaints
that
are
coming
in,
so
the
complaints
that
we
get.
D
We
can
let
them
know
about
trends
that
are
happening
on
the
consumer
side
of
things
with
through
the
consumer,
complaints
that
they
can
see
what
needs
to
happen
on
the
enforcement
side
of
things.
So
it
just
created
a
closer
working
relationship
between
the
two,
the
two
teams
that
are
actually
essentially
both
protecting
consumers,
but
it
just
brought
us
together
to
strengthen
that.
A
Thank
you
and
one
other
when,
when
you're
talking
about
the,
when
you
get
the
complaints
in
and
you're
trying
to
handle
them
and
and
to
rectify
the
problem,
what
what
authority
do
you
have
and
I'm
sure,
probably
different
in
each
category?
But
how
are
you
able
to
to
respond
and
and
what
authority
do
you
have
to
over-
let's
say
a
homeowner's
repair
or
whatever?
What
can
you
actually
do
to
the
company?
I
mean
israel
to
penalize
them
in
some
way
for
not
just
one
but
continued
problems
that
they're
having
right.
D
But,
as
noted,
if
we
see
anything
where
we're
seeing
a
business
who's
not
responding
to
our
complaints,
we
think
that
there's
some
type
of
potential
violation
of
the
law
that's
happening.
We
can
then
communicate
that
to
the
attorney
general's
office,
consumer
protection,
division,
who
can
enforce
the
law
and
has
a
little
bit
more
authority
than
the
division
of
consumer
affairs.
So
that's
really.
What
we
try
to
do
is
look
through.
A
A
Companies
coming
in
from
from
every
state,
you
know
just,
and
they
were
here
and
they
would
leave,
and
then
we
had
no
way
of
really
people
wouldn't
have
any
way
of
contacting
them.
They
didn't
or
they
call
a
number,
and
it
wouldn't
answer-
and
you
know
they
had
a
lot
of
problems,
and
I
just
wonder
if
there
is
any
way
to
to
go
back
on
on
those
companies
or
find
out
who
they
are,
especially
if
they're
out
of
state
companies
that
are
just
coming
in
here
temporarily
to
do
work.
D
Right,
anytime,
anytime,
the
natural
disasters
pop
up,
our
investigators
are
usually
on
high
alert
for
any
type
of
complaints
that
come
in.
Of
course,
as
I
mentioned,
we
try
to
work
with
our
partners,
especially
the
better
business
bureaus
that
are
there
locally.
We,
we
have
a
specific
brochure
that
we've
partnered
with
them
on
that
provides
consumer
tips.
For
you
know
in
the
wake
of
a
disaster,
so
we
try
to
partner
with
them
to
get
that
information
out
there,
but
our
investigators
are
looking
closely
as
we
as
dca
gets
complaints
in
to
see.
D
If
we,
if
they
can,
you
know,
get
out
to
the
community
quickly.
If
there's
some
type
of
issue,
where
we're
seeing
okay,
there
seems
to
be
some
type
of
a
pretend
or
fake
contractor
that's
coming
through
or
a
roofing
company
that's
coming
through.
If
we
can
get
out
there
quickly
before
they,
you
know,
fly
out
of
town
or
out
of
state
to
try
to
see
what
can
be
done
with
that.
So
it
is
certainly
an
issue,
especially,
and
it's
a
terrible
issue
to
happen
when.
G
A
C
D
We
do
a
lot
a
lot
of
referrals
to
the
tennessee
board
for
licensing
contractors.
When
we
talk
about
these
home
improvement
complaints,
a
lot
of
them,
we
will
also,
especially
if
someone
has
a
license,
we're
going
to
funnel
that
to
them
so
that
they
can
seek
out
any
type
of
disciplinary
action
on
that
licensee
yeah.
G
If
they
are
a
contractor,
you
want
to
see
a
copy
of
their
license.
Take
a
picture
of
it
so
that
you
know
you're
dealing
with
a
real
business
and
not
a
scammer
and
a
lot
of
times.
People
feel
a
little.
Oh.
I
don't
want
to
ask
for
his
license,
no
you're
protecting
yourself
and
then
also
ask
for
their
certificate
of
insurance,
so
that
you're
protecting
yourself.
That's
one
of
the
most
important
things
that
we
can
really
spread
around
to
people
and
oftentimes
the
average
consumer
feels
like.
G
Oh,
I
don't
want
to
ask
for
a
certificate
of
insurance.
You
get
that
certificate
of
insurance,
because
if
he
has
an
accident
on
your
property
you're
paying
probably
to
repair
his
injury.
So
thank
you
for
what
you
do.
I
I
just
think
you
guys
sound
amazing
organized
and
it's
just
terrific,
and
it's
really
worked
out
well
to
send
you
over
to
the
ag's
office.
It
sounds
like.
D
A
G
A
G
G
That
out,
I
forgot
about
that
that
there
is
that
verify,
because
that's
really
important,
I
mean
I,
you
know
I've
had
the
tornadoes
come
through
and
then
another
storm
come
through
and
all
of
that,
so
it's
been
terrible,
but
the
secondary
thing
is
just
because
they
have
a
contractor's
license.
Sometimes
they
don't
have
that
certificate
of
insurance,
and
that
is
really
critical
that
someone
get
a
copy
of
that
if
you've
ever
been
stung
by
that
it's
terrible.
A
I
agree,
and
I
always
tell
everyone
and
they
don't
do
it
but
being
in
the
insurance
business.
I
I've
seen
too
many
things
happen
like
that,
but
I
always
tell
everybody
to
make
sure
they're
bonded
and
insured
and
to
see
a
copy
of
that
too,
along
with
their
with
their
license.
Those
three
things
are
very
important:
they're
going
to
be
doing,
work
on
your
home
and
a
lot
of
times,
people
don't
get
it
and
it
turns
out
pretty
bad
for
them.
A
So
I
think,
unless
you
have
any
other
comments,
I
think
we've
covered
a
lot
of
things
and
we
really
appreciate
everything
that
you
do
and
your
help,
because
we
do
have
some
problems
out
there
and
you're
always
willing
to
help
us
out,
and
we
really
appreciate
that
so
much
and
thank
you
for
coming
today
and
giving
us
an
update
on
everything
and
we
look
forward
for
you
coming
back.
Okay
and
we're
going
to
go
back
in
session.