HB 1337 -- Check-Cashing Businesses

Sponsor:  Troupe

This bill establishes regulations for check-cashing businesses.
Banks, other financial institutions, and retailers that charge a
flat fee of no more than $2 are exempt.

Check-cashing businesses must apply for registration with the
Division of Finance.  The division may assess registration fees;
conduct investigations of the qualifications and criminal
background of the partners, directors, officers, supervisory
employees, and authorized agents of the business; and must act on
applications within 60 days.  If an application is denied, the
division must inform the applicant and publish the findings
within 20 days.  The applicant may appeal the decision to the
appropriate circuit court within 30 days after publication.
Registration must be renewed annually and is not transferable.

Check-cashing businesses may charge fees of no more than 1% or
$5, whichever is less, for cashing payroll or government checks,
and no more than 2% or $5, whichever is less, for cashing other
checks.  Fee schedules must be conspicuously posted with the
registration certificate of the business and information on
filing a complaint.  Businesses must also provide each customer
with a receipt, file an annual report with the division, and
maintain records of each transaction for at least three years.

Violations are class A misdemeanors and considered unfair and
deceptive trade practices.  The division may conduct
examinations, suspend or revoke registrations, issue cease and
desist orders, and impose civil penalties of up to $1,000 per
violation.  Penalties are paid to a fund for consumer education
programs.  The division or any aggrieved party may file a civil
action to recover actual, consequential, and punitive damages;
attorney and witness fees; and court costs.  Minimum damages are
$500 or the amount of loss, whichever is greater.

The division must also submit to the General Assembly and make
available to the public an annual report on the status of
check-cashing businesses in the state.

Missouri House of Representatives
Last Updated October 11, 2002 at 9:01 am