Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, June 13, 1995 TAG: 9506130062
SECTION: BUSINESS PAGE: B-6 EDITION: METRO
SOURCE: MAG POFF STAFF WRITER
DATELINE: LENGTH: Medium
Check cashers are people or companies that cash checks, drafts or money orders and charge a fee for the service. The State Corporation Commission said check-cashing outlets are mostly located in large urban areas, often in low-income neighborhoods or around military bases, and generally are used by customers who do not have accounts with banks.
Consumers who receive payroll, government assistance or other checks would be protected by the Virginia Check Casher Act, which takes effect July 1.
It prohibits check cashers from making payday loans; cashing post-dated checks; or engaging in unfair, deceptive or fraudulent practices. In addition, check-cashing outlets must conspicuously post their fees and the toll-free telephone number of the SCC for complaints.
Check cashers must register by July 1 with the SCC's Bureau of Financial Institutions and pay a $200 registration fee. Failure to do so constitutes a misdemeanor.
Retailers who occasionally cash checks and charge no more than $2 or 2 percent of the amount of the check are exempt. So are banks, savings institutions and credit unions.
The only check casher listed in the Roanoke Valley yellow pages is America's Cash Express with outlets on Williamson Road and Melrose Avenue.
A company spokesman at the Willamson Road office said he hadn't seen the law, but he expected the company's corporate office in Dallas to comply. He said the company has more than 400 offices nationwide, with more than 40 in Virginia, mostly in Arlington and Alexandria.
Check-casher registration forms are available from the SCC's Bureau of Financial Institutions, P.O. Box 640, Richmond 23205-0640 or by calling the bureau at (804) 371-9657.
The act was passed by the 1995 Virginia General Assembly.
by CNB