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.

SB 1125 requires online payment systems (like Venmo or Zelle) to provide written notice to users before freezing their funds, directly affecting individuals and businesses using these platforms. It mandates that notice be sent to all involved parties in a transaction (both sender and recipient) unless fraud or financial exploitation is suspected, in which case notice must be given within 30 days. Violations would be treated as unfair or deceptive acts under Tennessee’s Consumer Protection Act (TCA § 47-18-104). The bill excludes traditional banks, credit unions, and savings associations from these requirements and takes effect July 1, 2025.