Massachusetts Bill. H223: An act creating maximum allowable check-cashing rate
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, draft or money order plus a service charge of one dollar for all checks, drafts or money orders 100 dollars or less.
(2) 2.25 per cent of the face value of the check, draft or money order for all checks, drafts or money orders greater than 100 dollars
This act seeks to regulate fees charged to customers of "check cashers." It looks to protect the unbanked households that currently use "check cashers". There are currently 34 states with check cashing regulations. Of those 34 states, Massachusetts is 1 of 8 that does not limit transaction fees. This act seeks to regulate the fees as follows:
1.5% for checks $100 or less and 2.25% for checks over $100