Consumer Protection - As introduced, prohibits an online payment system from freezing the funds of a user without first providing the user with a written notice of the online payment system's intent to freeze the user's funds; designates a violation as an unfair or deceptive act or practice pursuant to the Tennessee Consumer Protection Act of 1977. - Amends TCA Title 45 and Title 47, Chapter 18.

HB 1011 requires online payment systems (like Venmo or PayPal, but excluding banks and credit unions) to provide users with written notice before freezing their funds. It mandates that notice be given to both the sender and recipient of a transaction, with exceptions for suspected financial exploitation or fraud. Violating this rule would be treated as an unfair or deceptive practice under Tennessee's Consumer Protection Act. The law takes effect July 1, 2025, applying to new or renewed agreements after that date.