2013 -- H 5128

=======

LC00343

=======

STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

____________

A N A C T

RELATING TO FINANCIAL INSTITUTIONS - CHECK CASHING

     Introduced By: Representatives Baldelli-Hunt, Trillo, Diaz, Marcello, and Edwards

     Date Introduced: January 23, 2013

     Referred To: House Corporations

It is enacted by the General Assembly as follows:

1-1

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

1-2

Cashing" is hereby amended to read as follows:

1-3

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

1-4

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

1-5

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

1-6

state public assistance or federal social security benefit;

1-7

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

1-8

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

1-9

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

1-10

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

1-11

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

1-12

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

1-13

one hundred thirty percent (130%).

1-14

     SECTION 2. This act shall take effect upon passage.

=======

LC00343

========

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO FINANCIAL INSTITUTIONS - CHECK CASHING

***

2-1

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

2-2

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

2-3

     This act would take effect upon passage.

=======

LC00343

=======