HB 4170
To prohibit the charging of any fees to cash any government issued check.
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Sign in to take action- Introduced
- Passed House of Delegates
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill prohibits merchants from charging fees to cash checks issued by state or federal governmental entities. Currently, merchants could charge a fee for this service, up to one percent of the check’s value or $1. The bill also includes provisions regarding check cashing services, loan agreements, and licensing requirements for merchants who derive a significant portion of their revenue from check cashing.
Key provisions
- Merchants cannot charge fees to cash government-issued checks.
- Fees for check cashing services are limited to the greater of $1 or one percent of the check’s face value.
- Merchants cannot agree to hold checks for loans and profit.
- Merchants deriving over five percent of revenue from check cashing must obtain a license.
- Certain financial institutions are exempt from licensing requirements.
- The bill defines ‘check cashing business’ and excludes travelers checks and foreign denomination checks.
Who is affected
- Merchants
- Governmental Entities
- Consumers receiving government checks
- Financial Institutions
Notable changes
- Eliminates fees for government check cashing.
- Establishes revenue thresholds for licensing requirements.
- Clarifies exemptions for certain financial institutions.
Sponsors
Official sponsors from legislative records.
Primary sponsor
Kump
Cosponsor
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