2012 -- H 7588

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LC01237

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO FINANCIAL INSTITUTIONS - CHECK CASHING

     Introduced By: Representatives Baldelli-Hunt, Winfield, Tarro, Medina, and Ucci

     Date Introduced: February 16, 2012

     Referred To: House Corporations

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 19-14.4-4 of the General Laws in Chapter 19-14.4 entitled "Check

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Cashing" is hereby amended to read as follows:

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     19-14.4-4. Fees for services. -- No licensee shall:

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      (1) Charge check-cashing fees in excess of three percent (3%) of the face amount of the

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check, or five dollars ($5.00), whichever is greater, if the check is the payment of any kind of

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state public assistance or federal social security benefit;

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      (2) Charge check-cashing fees for personal checks in excess of ten percent (10%) of the

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face amount of the personal check or five dollars ($5.00), whichever is greater; or

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      (3) Charge check-cashing fees in excess of five percent (5%) of the face amount of the

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check or five dollars ($5.00), whichever is greater, for all other checks.

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      (4) Charge deferred deposit transaction fees in excess of ten percent (10%) five percent

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(5%) of the amount of funds advanced, which is the equivalent of an annual percentage rate of

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one hundred thirty percent (130%).

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     SECTION 2. This act shall take effect upon passage.

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LC01237

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO FINANCIAL INSTITUTIONS - CHECK CASHING

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     This act would reduce the amount a check cashing business can charge for deferred

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deposit transaction fees from ten percent (10%) to five percent (5%) of the funds advanced.

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     This act would take effect upon passage.

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LC01237

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