HOUSE DOCKET, NO. 1431        FILED ON: 2/5/2021

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 401

 

The Commonwealth of Massachusetts

_________________

PRESENTED BY:

Daniel J. Hunt

_________________

To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:

The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:

An Act creating a maximum allowable check-cashing rate.

_______________

PETITION OF:

 

Name:

District/Address:

Date Added:

Daniel J. Hunt

13th Suffolk

2/5/2021


HOUSE DOCKET, NO. 1431        FILED ON: 2/5/2021

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 401

By Mr. Hunt of Boston, a petition (accompanied by bill, House, No. 401) of Daniel J. Hunt for legislation to limit fees charged by cashers of checks, drafts or money orders.  Consumer Protection and Professional Licensure.

 

The Commonwealth of Massachusetts

 

_______________

In the One Hundred and Ninety-Second General Court
(2021-2022)

_______________

 

An Act creating a maximum allowable check-cashing rate.

 

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
 

SECTION 1. Chapter 169A of the General Laws is hereby amended by adding after section 13 the following section:

Section 14. (a) Notwithstanding any other provision of the law to the contrary, no check-casher licensed or subject to regulation under this chapter shall directly or indirectly charge or collect fees or other considerations for rendering currency exchange services in excess of the following:

(1) 1.5 per cent of the face value of the check plus a service charge of one dollar for any government check issued by the United States, the Commonwealth of Massachusetts or any political subdivision thereof.

(2) 3 per cent of the face value of a payroll check 100 dollars or less plus a service charge of one dollar; 2.25 per cent of the face value of a payroll check greater than 100 dollars plus a service charge of one dollar.

(3) 5 per cent of the face value of the check or 5 dollars, whichever is greater, plus a service charge of one dollar, for all personal checks.

(4) 3 per cent plus a service charge of 1 dollar for all other payment instruments, including checks, drafts, or money orders.

(b) No check-casher licensed or subject to regulation under this chapter shall charge more than 5 dollars to set up an initial customer account.

SECTION 2. Section 13 of said chapter 169A is hereby amended by striking out the words “five hundred” and inserting in place thereof the following words:- one thousand.