House Co-Sponsorship Memoranda

In the near future, I will be introducing two bills, the first will amend the Check Cashing Licensing Act and the second will amend the Consumer Discount Company Act. The intent of these two bills is to stretch the consumer’s dollars, ensure consumers are informed, and protect consumers from potential abuses by eliminating one day loans and one week loans.

As you know, the Check Cashing Licensing Act of 1998 required the Department of Banking and Securities to issue a report three years after the effective date. Based on the Department’s recommendations to improve the act, I am proposing to lower the fee for a government assistance check, and expand the definition to include all governmental checks.

Check cashers will be required to post a notice of exact fees and charges, in plain view and in a location readily apparent to the consumer, so that an informed decision can be made.

Currently the Department is requiring check cashers and retail food stores that cash checks to be registered under the National Mortgage Licensing System, placing an undue burden on many small businesses. My legislation would clarify that this registration should not apply to those who are not marketing mortgages, but merely cashing checks.

The Consumer Discount Company law currently has no minimum contract timeframe, so loans can be as short as one hour. I am proposing a minimum of 10 business days for a loan contract; this will protect consumers from signing a one day or one week loan and allow borrowers to pay equal installments at regular intervals over a determined number of weeks, months or years.

Please join me in cosponsoring one or both of the bills listed.