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Ohio Laws and Rules
(A) As used in section 1315.26 of the Revised Code, “three percent of the face amount of the check” refers to the aggregate total of any and all fees and other charges, including but not limited to membership or bank processing fees. Fees paid by customers to buy money orders shall not be counted towards the three percent fee limit. As used in division (A) of section 1315.26 of the Revised Code, “check” and “checks” mean a “government check” as defined in paragraph (E) of this rule.
(B) As used in section 1315.26 of the Revised Code, “state agency” refers to an agency of this state.
(C) In the event books, records, data and documents of a check-cashing business are located outside Ohio, the check-cashing business shall be required, upon the request of the superintendent of financial institutions, to pay in advance the estimated costs of the examination of the check-cashing business outside the state of Ohio. The estimated costs of such examination, as determined by the superintendent, shall be deposited with the division of financial institutions upon demand. After the actual costs of the out-of-state examination have been determined, any funds in excess of costs as itemized by the division shall be returned to the check-cashing business.
(D) As used in this chapter, “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.
(E) As used in paragraph (C) of rule 1301-8-8-03, “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.
R.C. 119.032 review dates: 01/03/2005 and 11/15/2009
Promulgated Under: 119.03
Statutory Authority: 1315.27
Rule Amplifies: 1315.21, 1315.26
Prior Effective Dates: 1-22-95, 12-22-03
(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 shall also be submitted to the division of financial institutions for authorization for each additional business location where check-cashing activity is conducted. Each application for a main office or a business location shall be accompanied by investigation fees and license fees as prescribed by the superintendent of financial institutions. Upon approval of a license for a main office or authorization for an additional business location, the division shall issue a certificate authorizing such location under the license of the check-cashing business. The certificate shall disclose the address of, and be conspicuously displayed at, each approved business location. No such license shall be transferable or assignable. No check cashing business shall transact business pursuant to sections 1315.21 to 1315.30 of the Revised Code at any address not approved by the division of financial institutions.
(B) As provided in section 1315.23 of the Revised Code, a person licensed as a check-cashing business under sections 1315.21 to 1321.30 of the Revised Code shall maintain a net worth of at least twenty-five thousand dollars throughout the period of licensure. 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 change in the address shown on its license. If a check-cashing business intends to move its place of business, a new license must be obtained prior to conducting business at the new location. The division of financial institutions will issue a new license to the main office or business location which is relocated for a fee of ten dollars.
(D) Check-cashing businesses which obtain licenses after July first, but before December thirty-first of any calendar year shall pay pro-rated license fees equal to one-half of the yearly check-casher license fee currently in effect.
R.C. 119.032 review dates: 01/03/2005 and 11/15/2009
Promulgated Under: 119.03
Statutory Authority: 1315.27
Rule Amplifies: 1315.22, 1315.23
Prior Effective Dates: 1-22-95, 11-13-97
Each check-cashing business shall maintain at and for each business location, the following records and information, which shall be kept legibly 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 consumer finance:
(A) 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.
(B) 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.
(C) A record disclosing, for each government check cashed, the following:
(1) The name of each maker;
(2) The name and address of each payee;
(3) The date of each government check;
(4) The date each government check is cashed;
(5) The last five digits of the preprinted number on each check;
(6) The face amount of each check;
(7) The amount of cash actually given to the person cashing the check;
(8) The amounts of any and all fees charged or received for cashing each check;
(D) A licensee shall segregate and keep its check-cashing records separate from the records of any other business.
(E) 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 consumer finance.
R.C. 119.032 review dates: 01/03/2005 and 11/15/2009
Promulgated Under: 119.03
Statutory Authority: 1315.27
Rule Amplifies: 1315.27
Prior Effective Dates: 1-22-95
(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, unless the check-cashing business is properly licensed pursuant to sections 1315.35 to 1315.44 of the Revised Code and such check is held in accordance with those sections.
(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.
R.C. 119.032 review dates: 01/03/2005 and 11/15/2009
Promulgated Under: 119.03
Statutory Authority: 1315.27
Rule Amplifies: 1315.27
Prior Effective Dates: 1-22-95, 11-13-97
(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.
(4) No check-cashing business shall advertise or represent that the check-cashing business engages in the business of making loans unless properly licensed pursuant to sections 1315.35 to 1315.44 of the Revised Code.
(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) The words “advertise,” “advertisement” and “advertising” as used in this rule shall mean the publication or announcement in any material printed, published, displayed, distributed, or broadcast for the purpose of soliciting check-cashing business.
(D) The phrase “engages in the business of making loans” as used in this rule, includes, but is not limited to, the following activities:
(1) Entering into any express or implied agreement which creates a debt between a customer, as debtor, and a check-cashing business, as lender; or
(2) Any arrangement between a check-cashing business and its 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.
R.C. 119.032 review dates: 01/03/2005 and 11/15/2009
Promulgated Under: 119.03
Statutory Authority: 1315.27
Rule Amplifies: 1315.27
Prior Effective Dates: 1-22-95, 11-13-97