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

1301:8-8-01 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

1301:8-8-02 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

1301:8-8-03 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

1301:8-8-04 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

1301:8-8-06 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