Bill > H4277

This bill establishes maximum check-cashing rates for licensed check-cashing businesses in Massachusetts, setting specific percentage and dollar limits for different types of checks. For government checks under $1,500, businesses can charge up to 2.5% of the check's value plus a $1 service charge; for payroll checks, the maximum is 2.25% plus $1; for personal checks, businesses can charge either 5% of the face value or $5, whichever is higher, plus $1; and for other payment instruments under $1,500, the limit is 3% plus $1. The bill also caps initial customer account setup fees at $5 and requires check-cashing businesses to file an annual fee schedule with the state commissioner, which must be conspicuously posted at each business location. Additionally, the bill increases the potential fine for violations from $500 to $1,000, with the new check-cashing rate regulations set to take effect 12 months after the act's effective date. This legislation aims to protect consumers by regulating the fees that check-cashing businesses can charge, potentially reducing the financial burden on individuals who rely on these services.

Joint Committee on Consumer Protection and Professional Licensure (Joint)

https://malegislature.gov/Bills/194/H4277