The Act limits check-cashing fees to the greater of 2
percent or $5 for checks issued by the U.S.
Government, State of Oregon, or the municipality where the check
is cashed; the greater of 3 percent or $5 for
payroll checks and all other government checks; and the greater
of $5 or 10 percent for personal checks. The
total fee for cashing any check cannot exceed $100.
In addition to capping the fees, the new law requires
check-cashing businesses to be licensed by the Department
of Consumer and Business Services (DCBS) and to conspicuously
post their license and fee schedule.
DCBS can issue civil penalties for violations of the new law and
order restitution of excess fees.
Money Transmitters operating under a valid Oregon license do not
have to be licensed. However, licensed Money Transmitters do
have to comply with the limits on fees charged, fee posting
requirements, record keeping, and other requirements of the law.
This exemption does not apply to the authorized delegates of
licensed money transmitters - these businesses must be licensed
to cash checks.
Banks do not have to be licensed and are not subject to the fee
limits or record-keeping requirements.
Credit unions do not have to be licensed as check-cashing
businesses, but are subject to the check-cashing fee limits of
Chapter 343, 2007 Laws (SB 592).
According to DCBS, bona fide retailers are exempt so long as
check-cashing transactions represent less than 3 percent of
total retail transactions. Retailers that do check-cashing as
incident of or independent of a retail sale or service cannot
charge more than the greater of $2 or 2 percent of the face
value of the check.
| Type of payment instrument |
WITH
a valid and current government-issued photo
identification
|
WITHOUT
a valid and current government-issued photo
identification
|
| Issued by the federal government or one of its
agencies, by the State of Oregon or one of its agencies,
or by the government of the municipality in which a
person is cashing the payment instrument |
The greater of $5 or 2% of the face value of the
payment instrument |
The greater of $5 or 2.5% of the face value of the
payment instrument |
| Issued by any other state or political subdivision
or a payroll check |
The greater of $5 or 3% of the face value of the
payment instrument |
The greater of $5 or 3.5% of the face value of the
payment instrument |
| Any other type, including personal checks, money
orders, etc. |
The greater of $5 or 10% of the face
value of the payment instrument |
| |
No fee can exceed $100 |
Bona fide
retailers are exempt so long as check-cashing transactions
represent less than 3 percent of total retail transactions.