Chapter 235

2005 -- S 0773 SUBSTITUTE B

Enacted 07/09/05

A N A C T

RELATING TO FINANCIAL INSTITUTIONS -- CHECK CASHING

Introduced By: Senator Walter S. Felag

Date Introduced: February 17, 2005

It is enacted by the General Assembly as follows:

     SECTION 1. Sections 19-14.4-4, 19-14.4-5 and 19-14.4-5.1 of the General Laws in

Chapter 19-14.4 entitled "Check Cashing" are hereby amended to read as follows:

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

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

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

state public assistance or federal social security benefit;

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

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

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

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

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

amount of the check or five dollars ($5.00), whichever is greater. fifteen percent (15%) of the

amount of funds advanced.

19-14.4-5. Posting of charges -- Endorsement -- Receipt. -- (a) In every location

licensed pursuant to this chapter, there shall be at all times posted in a conspicuous place within

the licensed premises a complete and unambiguous schedule of all fees for cashing checks,

deferred deposit transactions expressed as both a dollar amount and an annual percentage rate,

and the initial issuance of any identification card.

      (b) Before a licensee shall deposit, with any regulated institution or other insured-

deposit-taking institution organized under the laws of the United States, a check cashed by the

licensee, the check must be endorsed with the name under which the licensee is doing business

and must include the words "licensed check cashing services".

      (c) The licensee shall provide a receipt for each transaction for the benefit of a customer.

      (d) Each check casher shall also post a list of valid identification which is acceptable in

lieu of identification provided by the check casher. The information required by this section shall

be clear, legible, and in letters not less than one-half (1/2) inch in height. The information shall be

posted in a conspicuous location in the unobstructed view of the public within the check cashers'

premises. Failure to post information as required by this section, or the imposition of fees or

identification requirements contrary to the information posted, shall constitute a deceptive trade

practice under chapter 13.1 of title 6.

19-14.4-5.1. Customer checks -- Deferred deposits. -- (a) A check casher may defer the

deposit of a personal check written by a customer for a fixed term of fourteen (14) days, a term of

no less than thirteen (13) days, pursuant to the provisions of this section. The face amount of the

check shall not exceed three hundred dollars ($300). five hundred dollars ($500).

      (b) Each deferred deposit shall be made pursuant to a written agreement that has been

signed by the customer and by the check casher or an authorized representative of the check

casher. The written agreement shall contain a statement of the total amount of any fees charged

for the deferred deposit, expressed both in United States currency and as an annual percentage

rate (APR), as required by federal regulations. The written agreement shall authorize the check

casher to defer deposit of the personal check until a specific date of fourteen (14) until a specific

date no less than thirteen (13) days from the date the written agreement was signed and executed.

The written agreement shall not permit the check casher to accept collateral.

      (c) A roll-over is any refinance of a deferred deposit transaction or an extension or

deferral of the payment due date of the transaction for an additional fee or finance charge. A roll-

over is an extension or deferral of the payment due date of a deferred deposit transaction for the

payment of only an additional fee.

     (d) The maximum amount of a single customer's check is three hundred dollars ($300).

five hundred dollars ($500).

      (e) The maximum aggregate amount of concurrently outstanding checks held by the

licensee or its affiliate from the same customer is three hundred dollars ($300). five hundred

dollars ($500).

      (f) The maximum number of concurrently outstanding checks held by the licensee or its

affiliates from the same customer is three (3).

      (g) The maximum number of rollovers permitted is one.

(h) The check casher shall give a duplicate original of the agreement to the customer at

the time of the transaction.

     SECTION 2. This act shall take effect upon passage.

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LC02049/SUB B

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