Chapter 204
2010 -- H 7330 SUBSTITUTE A
Enacted 06/25/10
A N A C T
RELATING TO
FINANCIAL INSTITUTIONS -- LICENSED ACTIVITIES
Introduced By: Representative Lisa Baldelli-Hunt
Date Introduced: February 03, 2010
It is enacted by the
General Assembly as follows:
SECTION 1. Section 19-14.4-4 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 fifteen percent (15%) ten
percent (10%) of
the amount of funds advanced.
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 term
of no less than thirteen (13) days,
pursuant to the provisions of this section. The face amount of
the check shall not exceed 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
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 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 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 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 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 on July 1, 2010.
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LC01031/SUB A
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