Increases penalties for individuals or companies who engage in the business of cashing checks, drafts or money orders for consideration without a license; makes such violation a class E felony; provides for a fine of $2,500 for each transaction.
TITLE OF BILL: An act to amend the banking law, in relation to increasing the penalties for individuals or companies who engage in the business of cashing checks, drafts or money orders for consideration without a license
PURPOSE OR GENERAL IDEA OF BILL: To create an E felony and monetary penalties for those who engage in cashing checks, drafts or money orders without a license.
SUMMARY OF SPECIFIC PROVISIONS: Amends Subdivision 5 of section 373 of the banking law (1) to make it an E Felony to engage in the cashing of checks, drafts or money orders without a license, and (2) to impose a penalty of $2,500 for each violation of this subdivision. Current law is an A misdemeanor.
JUSTIFICATION: Unregistered check cashers are by the very nature unregulated by the State Banking Department and therefore do not have to comply with the necessary consumer protections. These individuals charge fees that are unscrupulous and border on usury. By raising the penalty to the level of a Felony and by imposing monetary penalties we are ensuring that consumers will be protected to the full extent of the law.
PRIOR LEGISLATIVE HISTORY: S.3361A of 2011-12 - Referred to Banks
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: One hundred twenty days since effective date.
STATE OF NEW YORK ________________________________________________________________________ 715 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________Introduced by Sen. GRISANTI -- read twice and ordered printed, and when printed to be committed to the Committee on Banks AN ACT to amend the banking law, in relation to increasing the penalties for individuals or companies who engage in the business of cashing checks, drafts or money orders for consideration without a license THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 5 of section 373 of the banking law, as added by chapter 235 of the laws of 2008, is amended to read as follows: 5. Notwithstanding the provisions of subdivision four of this section, any person, partnership, association or corporation and the several members, officers, directors, agents and employees thereof who shall violate the provisions of subdivision one of section three hundred sixty-seven of this article shall be guilty of a class
[A misdemeanor]E FELONY AND SHALL BE PUNISHABLE BY A FINE OF TWO THOUSAND FIVE HUNDRED DOLLARS FOR EACH TRANSACTION MADE IN VIOLATION OF SUCH SUBDIVISION. S 2. This act shall take effect on the one hundred twentieth day after it shall have become a law.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD04601-01-3