Chapter 1301:8-8 Rules Relating to Check-Cashing Businesses

1301:8-8-01 [Effective until 9/19/2016] Definitions.

As used in sections 1315.21 to 1315.30 of the Revised Code and this chapter:

(A) "Three percent of the face amount of the check" means the aggregate total of any and all fees and other charges, including but not limited to membership or financial institution processing fees. Fees paid by customers to buy money orders shall not be counted towards the three percent fee limit.

(B) " State agency" refers to an agency of this state.

(C) "Cash" means United States currency and does not include a check, draft, traveler's check, money order or other instrument for the transmission of money.

(D) " Government check" means a check issued by this state, a state agency, a political subdivision of this state, or the United States and includes but is not limited to checks issued by state universities and public school districts located in Ohio.

(E) "Advertise," "advertisement," and "advertising" shall mean the publication or announcement in any material printed, published, displayed, distributed, or broadcast for the purpose of soliciting check-cashing business.

Effective: 05/01/2010
R.C. 119.032 review dates: 01/07/2010 and 05/01/2015
Promulgated Under: 119.03
Statutory Authority: 1315.27
Rule Amplifies: 1315.21, 1315.24, 1315.26
Prior Effective Dates: 1/22/1995, 12/22/2003

1301:8-8-01 [Effective 9/19/2016] Definitions.

As used in sections 1315.21 to 1315.30 of the Revised Code and this chapter:

(A) "Advertise," "advertisement," and "advertising" means any written or oral statement, illustration, or depiction designed to create interest in purchasing check-cashing services.

(B) "Cash" means United States currency and does not include a check, draft, traveler's check, money order, or other instrument for the transmission of money.

(C) "Government check" means a check issued by this state, a state agency of this state, a political subdivision of this state, or the United States, including, but not limited to, checks issued by the internal revenue service and the pension benefit guaranty corporation.

(D) "Political subdivision" means a municipal corporation, township, county, school district, or other body corporate and politic responsible for governmental activities in a geographic area smaller than that of the state.

(E) "State agency" means every organized body, office, agency, institution, or other entity established by the laws of this state for the exercise of any function of state government, and includes, but not limited to, checks issued by the bureau of workers' compensation, the industrial commission, any state-supported institution of higher education, the public employees retirement system, the Ohio police and fire pension fund, the state teachers retirement system, the school employees retirement system, the state highway patrol retirement system, and the courts.

(F) "Three per cent of the face amount of the check" means the aggregate total of any and all fees and other charges, including, but not limited to, membership or financial institution processing fees. Fees paid by customers to buy money orders shall not be counted towards the three percent fee limit.

Replaces: 1301:8-8-01

Effective: 9/19/2016
Five Year Review (FYR) Dates: 09/19/2021
Promulgated Under: 119.03
Statutory Authority: 1315.27
Rule Amplifies: 1315.21, 1315.24, 1315.26
Prior Effective Dates: 1/22/1995, 12/22/2003, 5/1/2010

1301:8-8-02 [Effective until 9/19/2016] Licenses.

(A) In accordance with sections 1315.21 to 1315.30 of the Revised Code each check-cashing business shall obtain a license for its main office. An application, license fee and investigation fee shall also be submitted to the division of financial institutions for authorization for each additional business location where check-cashing activity is to be conducted. Every subsequent application for additional business locations shall be accompanied by an initial investigation fee and an annual license fee.

(B) A check-cashing business shall notify the superintendent, in writing, within ten business days if the net worth of the check-cashing business becomes less than twenty-five thousand dollars.

(C) Every check-cashing business shall notify the division of financial institutions in writing thirty days prior to the effective date of a relocation or change in the address of any of its business locations. If a check-cashing business intends to move any of its business locations, authorization from the division of financial institutions must be obtained prior to conducting business at the new location.

Effective: 05/01/2010
R.C. 119.032 review dates: 01/07/2010 and 05/01/2015
Promulgated Under: 119.03
Statutory Authority: 1315.27
Rule Amplifies: 1315.22, 1315.23
Prior Effective Dates: 1/22/1995, 11/13/1997

1301:8-8-02 [Effective 9/19/2016] Licenses.

(A) In accordance with sections 1315.21 to 1315.30 of the Revised Code each check-cashing business shall obtain a license for its main office. An application, license fee and investigation fee shall also be submitted to the superintendent of financial institutions for authorization for each additional business location where check-cashing activity is to be conducted. Every subsequent application for additional business locations shall be accompanied by an initial investigation fee and an annual license fee.

(B) Pursuant to sections 1315.22(B)(3) and 1315.27(B) of the Revised Code, a licensed check-cashing business or applicant to be a licensed check-cashing business shall provide the superintendent with evidence of its registration as a money services business with the financial crimes enforcement network (FinCEN), of the U.S. department of the treasury as required by 31 C.F.R. 1022.380, as in effect on April 1, 2015. If the licensed check-cashing business or applicant to be a licensed check-cashing business claims to be exempt from registration, it shall provide a written explanation of the basis of the exemption. Evidence of money services business registration or exemption shall be provided to the superintendent on an annual basis in conjunction with the renewal application.

(C) A licensed check-cashing business shall notify the superintendent, in writing, within ten business days if the net worth of the check-cashing business becomes less than twenty-five thousand dollars.

(D) A licensed check-cashing business shall notify the superintendent in writing at least thirty days prior to relocating any of its licensed locations. A check-cashing business shall not cash checks at the new location until it has received a check-cashing business license for that location.

Effective: 9/19/2016
Five Year Review (FYR) Dates: 07/05/2016 and 09/19/2021
Promulgated Under: 119.03
Statutory Authority: 1315.27
Rule Amplifies: 1315.22, 1315.23
Prior Effective Dates: 1/22/1995, 11/13/1997, 5/1/2010

1301:8-8-03 [Effective until 9/19/2016] Recordkeeping.

(A) Except as otherwise provided in paragraph (B) of this rule, each check-cashing business shall maintain, preserve and keep readily available for inspection by the division of financial institutions its business records for at least two years.

(B) For each business location, at least the following records and information, which shall be kept at the business location or at another location approved in advance in writing by the superintendent. All records and information shall be legible in ink or typewritten, preserved for at least two years after the date of final entry, and kept readily available for inspection by the division of financial institutions:

(1) A daily cash reconciliation that summarizes daily activity, reconciles cash-on-hand at the opening of business to cash-on-hand at the close of business, and separately reflects cash received from the sale of checks, cash disbursed in cashing checks, redemption of returned items, bank cash deposits and bank cash withdrawals.

(2) A general ledger that contains records of all assets, liabilities, capital, income and expenses. The general ledger shall be posted within five business days of the close of the month from the original daily record of checks cashed, summary of business, or any other records of original entry. The general ledger may consolidate activity at two or more locations of a licensee provided that the books of original entries are maintained separately for each location.

(3) A record disclosing, for each government check cashed, the following:

(a) The name of each maker;

(b) The name and address of each payee;

(c) The date of each government check;

(d) The date each government check is cashed;

(e) The last five digits of the preprinted number on each check;

(f) The face amount of each check;

(g) The amount of cash actually given to the person cashing the check;

(h) The amounts of any and all fees charged or received for cashing each check;

(C) A licensee shall segregate and keep its check-cashing records separate from the records of any other business.

(D) A licensee may employ other methods of recording data, keeping required records and keeping books, such as a logbook, cash register receipt tape, customer card, check photograph, or electronic or computerized methods in lieu of the methods described in this rule, provided written printouts or hard copies of the required data are readily available at each licensed location in a form approved, in advance, by the superintendent of financial institutions.

Effective: 05/01/2010
R.C. 119.032 review dates: 01/07/2010 and 05/01/2015
Promulgated Under: 119.03
Statutory Authority: 1315.27
Rule Amplifies: 1315.27
Prior Effective Dates: 1/22/1995

1301:8-8-03 [Effective 9/19/2016] Recordkeeping.

(A) A licensed check-cashing business shall maintain its records for at least two years from the date of each check-cashing transaction. The retention period for an advertisement commences from the date the advertisement is published, broadcast, or disseminated.

(B) Records shall be maintained at the licensed location where the check-cashing transaction ocurred or at another location approved in advance in writing by the superintendent. Records shall be legible and maintained in a type size that is clearly readable without magnification. The following records shall be maintained:

(1) A daily cash reconciliation that summarizes daily activity, reconciles cash-on-hand at the opening of business to cash-on-hand at the close of business, and separately reflects cash received from the sale of checks, cash disbursed in cashing checks, redemption of returned items, bank cash deposits and bank cash withdrawals.

(2) A sortable electronic general ledger that contains records of all assets, liabilities, capital, income and expenses. The general ledger must be posted within thirty business days of the close of the month from the original daily record of checks cashed, summary of business, or any other records of original entry. The general ledger may consolidate activity at two or more locations of a licensed check-cashing business provided that the books of original entries are maintained separately for each location.

(3) A sortable electronic spreadsheet for each government check cashed which contains the following fields of information:

(a) The name of each issuer;

(b) The name and address of each payee;

(c) The date of each check;

(d) The date each check is cashed;

(e) The last five digits of the preprinted number on each check;

(f) The face amount of each check;

(g) The amount of cash actually given to the person cashing the check;

(h) The amounts of any and all fees charged or received for cashing each check.

(4) A file of all advertisements.

(C) Records shall be available at all times during normal business hours for review by the superintendent.

(D) A licensed check-cashing business shall segregate its check-cashing business records from all other business records.

(E) Records pertaining to a licensed check-cashing business may be maintained in their original paper form or on an electronic storage media or system. Any records maintained on an electronic storage media or system shall meet all of the following requirements:

(1) The electronic storage media or system must preserve the records in a non-rewriteable, non-erasable format;

(2) The electronic storage media or system must verify automatically the quality and accuracy of the storage media recording process;

(3) The electronic storage media or system must serialize the original and the duplicate units of storage media, and affix a date and time for the required period of retention on both the original and duplicate;

(4) The electronic storage media or system must have the capacity to readily download indices and records preserved on the electronic storage media or system to any medium acceptable to the superintendent;

(5) Acceptable facilities and appropriate equipment must, at all times during normal business hours, be available to the superintendent for immediate, easily readable projection or production of electronic storage media or system images and for producing easily readable images;

(6) Immediate facsimile enlargement must be available upon the superintendent's request;

(7) A duplicate copy of the electronic record stored on any electronic media or system for the time required must be stored separately from the "original" electronic record;

(8) The electronic storage media or system must organize and index accurately all information maintained on both the original and duplicate storage media or system. At all times, a licensee must be able to have indices of the electronic records being stored available for examination by the superintendent. Each index must also be duplicated and the duplicate copies must be stored separately from the original copy of each index. Original and duplicate indices must be preserved for the time required for the indexed records;

(9) An audit system will be in place providing for accountability regarding inputting of records and inputting any changes made to every original and duplicate record maintained and preserved. At all times, a licensed check-cashing business must be able to have the results of the audit system available for examination by the superintendent. The audit results must be preserved for the time required for the audited records;

(10) All information necessary to access records and indices stored on the electronic storage media or system, a copy of the physical and logical file format of the electronic storage media or system, the field format of all different information types written on the electronic storage media or system, together with the appropriate documentation and information necessary to access records and indices will be maintained, kept current and provided promptly to the superintendent, upon request;

(11) No paper documents produced or reproduced by means of an electronic storage media or system shall be destroyed until the conditions of this paragraph have been met with regard to each paper document that is to be destroyed; and

(12) At the request of the superintendent, the records shall be printed on paper for inspection or examination without cost to the superintendent within forty-eight hours of the request. The superintendent may grant additional time for good cause shown upon receipt of a request for additional time from the licensee.

(F) In order to reduce the risk of consumer fraud and related harms, including identity theft, a licensed check-cashing business shall be required to comply with section 216 of the "Fair and Accurate Credit Transactions Act of 2003," 117 Stat. 1952 (amended 2010), 15 U.S.C. 1681w as in effect on April 1, 2015, section 501 of the "Gramm Leach Bliley Act," 113 Stat. 1338 (1999) (amended 2010), 15 U.S.C. 6801 as in effect on April 1, 2015, and the rules promulgated pursuant to those federal acts, including 16 C.F.R. Part 313 and 16 C.F.R. Part 682, as in effect April 1, 2015, pertaining to the maintenance, security, and disposal of consumer information and records.

Replaces: 1301:8-8-03

Effective: 9/19/2016
Five Year Review (FYR) Dates: 09/19/2021
Promulgated Under: 119.03
Statutory Authority: 1315.27
Rule Amplifies: 1315.27
Prior Effective Dates: 1/22/1995, 5/1/2010

1301:8-8-04 [Effective until 9/19/2016] Business practices.

(A) No check-cashing business shall issue any money order without concurrently receiving the face amount thereof in cash, or by check, less any fees permitted by law for the issuance of the money order.

(B) Each check-cashing business shall pay the entire amount of a check, in cash, or by money order or check if requested, to the customer tendering the check to be cashed, less any charges permitted by law. All checks shall be paid on the same date the check is presented. In no event shall the check-cashing business make a partial payment of any check.

(C) No check-cashing business shall directly or through its agents:

(1) Cash any check, nor act as intermediary, agent, or in any way assist in the negotiation of any check, at any place other than the licensed business locations;

(2) Cash any check if the check-cashing business or any of its agents have reason to believe or know that the maker, the payee or any of the endorsers of such check, or the persons presenting it for cashing, are known by any name other than that appearing on the checks, without recording on its books and records the true name or names, as well as the assumed name or names of such person or persons, together with the true addresses. The use of common nicknames or names resulting from legal changes made through the courts or by marriage shall not be deemed a violation of this rule;

(3) Alter or change the date of any check presented for cashing;

(4) Fail to deposit with a financial institution a check presented by a customer for cash within two banking days from the day the customer presented such check to the check-cashing business ;

(5) Charge or collect any fee to cash a check issued by the check-cashing business or an affiliate of the check-cashing business in connection with a loan to that customer;

(6) Assist another person in collecting additional interest or fees for any loan made to a customer, including by sharing revenue, profit, or check cashing fees, paying above market rent, or otherwise contracting with that person or their affiliates as part of an effort to evade the interest or fees restrictions applicable to the loan.

(D) Each check-cashing business shall provide a receipt to each customer for whom a check is cashed. The receipt shall show the face amount of the check which has been cashed and the fee charged for cashing the check. The receipt shall be dated and have the name, the address and the license number of the check-cashing business on it. A check-cashing business may provide one receipt to customers for multiple transactions as long as check-cashing fees are clearly disclosed.

(E) No check-cashing business shall advertise or represent that the check-cashing business engages in the business of making loans including entering into any express or implied agreement which creates a debt between a customer, as debtor, and a check-cashing business, as lender unless properly licensed and authorized to engage in such activity.

(F) No check-cashing business shall enter into any arrangement with a customer, whereby the check-cashing business agrees to withhold depositing a check with a financial institution for any duration of time in exchange for money or other valuable consideration.

Effective: 05/01/2010
R.C. 119.032 review dates: 01/07/2010 and 05/01/2015
Promulgated Under: 119.03
Statutory Authority: 1315.27
Rule Amplifies: 1315.27
Prior Effective Dates: 1/22/1995, 11/13/1997

1301:8-8-04 [Effective 9/19/2016] Business practices.

(A) A licensed check-cashing business shall not issue any money order without concurrently receiving the face amount thereof in cash, or by check, less any fees permitted by law for the issuance of the money order.

(B) A licensed check-cashing business shall pay the entire amount of a check, in cash, or by money order or check if requested, to the customer tendering the check to be cashed, less any charges permitted by law. All checks shall be paid on the same date the check is presented. In no event shall a licensed check-cashing business make a partial payment of any check.

(C) A licensed check-cashing business shall not directly or through its agents:

(1) Cash any check, nor act as intermediary, agent, or in any way assist in the negotiation of any check, at any place other than the licensed business locations;

(2) Cash any check if the check-cashing business or any of its agents have reason to believe or know that the maker, the payee or any of the endorsers of such check, or the persons presenting it for cashing, are known by any name other than that appearing on the checks, without recording on its books and records the true name or names, as well as the assumed name or names of such person or persons, together with the true addresses. The use of common nicknames or names resulting from legal changes made through the courts or by marriage shall not be deemed a violation of this rule;

(3) Alter or change the date of any check presented for cashing;

(4) Fail to deposit with a financial institution a check presented by a customer for cash within two banking days from the day the customer presented such check to the check-cashing business;.

(D) A licensed check-cashing business shall provide a receipt to each customer for whom a check is cashed. The receipt shall show the face amount of the check which has been cashed and the fee charged for cashing the check. The receipt shall be dated and have the name, address, and license number of the check-cashing business on it. A check-cashing business may provide one receipt to customers for multiple transactions as long as check-cashing fees are clearly disclosed.

(E) A licensed check-cashing business shall not defer depositing or advertise or represent that it can or will defer depositing a customer's check in exchange for money or other valuable consideration unless the check-cashing business is doing so pursuant to a license to engage in the business of lending money, credit, or choses in action in accordance with sections 1321.01 to 1321.19 of the Revised Code or pursuant to a certificate of registration to make loans in accordance with sections 1321.51 to 1321.60 of the Revised Code.

Effective: 9/19/2016
Five Year Review (FYR) Dates: 07/05/2016 and 09/19/2021
Promulgated Under: 119.03
Statutory Authority: 1315.27
Rule Amplifies: 1315.27
Prior Effective Dates: 1/22/1995, 11/13/1997, 5/1/2010

1301:8-8-06 [Effective until 9/19/2016] Advertising.

(A) The following advertising requirements shall be observed by all check-cashing businesses:

(1) Every advertisement shall state and clearly indicate the identity of the check-cashing business and shall do so in a manner that prevents confusion with the name of any other unrelated check-cashing business.

(2) No check-cashing business shall advertise or transact business pursuant to sections 1315.21 to 1315.30 of the Revised Code under any other name than the name set forth on its license. All advertising must include the license number assigned by the division of financial institutions to the check-cashing business.

(3) A check-cashing business shall not advertise by the use of unqualified superlatives, including but not limited to, "lowest fees," "lowest charges" or words of similar import.

(B) Every check-cashing business shall maintain in a location approved by the superintendent of financial institutions, a file of all newspaper, magazine, direct mailing, roadside advertising, and scripts of radio and television commercials, for a period of one year from the dates these advertisements were disseminated. Upon reasonable notice, the file shall be readily available for inspection by the division of financial institutions during regular business hours.

(C) Every advertisement placed, or caused to be placed, by a licensee shall:

(1) Clearly identify the check-cashing business by stating the licensee's true name as printed on its license. Where a licensee has received the approval of the superintendent of the division of financial institutions to conduct business under a trade or alternative name, the registrant may use its true, trade or alternative name, or any combination of them, as they appear on the license issued by the division;

(2) List the check-cashing business' license number; and

(3) Specify the check-cashing business licensee's principal office address as listed on its license. Providing telephone numbers, newspaper addresses or post office box addresses without listing the principal office address as printed on the license is prohibited.

(D) The identifying information required by paragraph (C) of this rule shall appear in any written advertisement using a font no smaller than ten point times new roman.:

(E) Paragraph (C) of this rule shall not apply to minimal promotional advertising done on pens, pencils, pocket calendars, balloons, coffee mugs and similar items. E-mail and internet addresses are considered minimal promotional advertising, but the content of a web page or e-mail is not. For the purpose of radio advertisements, a statement of the full business name and the number listed on the license shall be sufficient to meet the requirements of this rule.

(F) All internet advertising shall comply with paragraph (C) of this rule by either placing the name, license number and principal office address on every viewable web page of the website within the licensee's ownership and or control, or placing the name, license number and principal office address on the home page and then having a link to the home page on each additional web page. For purposes of this rule, a web page is one that may or may not scroll beyond the borders of the screen.

(G) Information on an internet website maintained by a licensee which becomes outdated or expired, shall be updated within thirty calendar days of the information becoming outdated or expired. Each website maintained by a licensee shall disclose the date upon which the information contained therein was most recently updated. If a licensee's website is maintained on the licensee's behalf by a third party, the licensee shall provide to the third party, a timely written notice, by mail, fax or electronic means, of any updates to outdated or expired information, so that such updates may be accomplished in accordance with this rule. A licensee who provides such timely notice shall not be in violation of this paragraph, if the third party fails to effect a requested change as notified.

Effective: 05/01/2010
R.C. 119.032 review dates: 01/07/2010 and 05/01/2015
Promulgated Under: 119.03
Statutory Authority: 1315.27
Rule Amplifies: 1315.27
Prior Effective Dates: 1/22/1995, 11/13/1997

1301:8-8-06 [Effective 9/19/2016] Advertising.

(A) Every advertisement placed, or caused to be placed, by a licensed check-cashing business shall:

(1) State the name of the licensed check-cashing business as printed on its license. If a licensed check-cashing business has been approved by the superintendent to conduct business using a trade name or fictitious name, it may use its name, trade name, or fictitious name, or any combination of them, as they appear on its license;

(2) State its license number or the license number of its main office location; and

(3) State the address as listed on its license or the address of its main office location.

(B) When the information required by paragraph (A) of this rule appears in a written advertisement, it shall be clearly legible to a reasonable person.

(C) Paragraph (A) of this rule shall not apply to advertising done on pens, pencils, pocket calendars, balloons, coffee mugs, and similar promotional items.

(D) Website advertising shall comply with paragraph (A) of this rule by placing the required information on every viewable web page of the website. In the alternative, a licensed check-cashing business may place a hyperlink on every viewable web page which links directly to a web page that contains the required information.

(E) A licensed check-cashing business shall keep its website advertising pertaining to its check-cashing business current by updating or having updated its advertising no later than thirty calendar days after any information becomes outdated or expired.

(F) Advertisements shall not contain unqualified superlatives, including, but not limited to, "lowest fees," "lowest charges," or words of similar import.

Replaces: 1301:8-8-06

Effective: 9/19/2016
Five Year Review (FYR) Dates: 09/19/2021
Promulgated Under: 119.03
Statutory Authority: 1315.27
Rule Amplifies: 1315.27
Prior Effective Dates: 1/22/1995, 11/13/1997, 5/1/2010