What's happening
This bill increases penalties for unlicensed check-cashing businesses in New York, making violations a class E felony with higher fines.
Why it matters
Raises the legal stakes for violators. By upgrading unlicensed check-cashing from a misdemeanor to a felony, the bill signals that operating without a license is a serious financial crime, likely deterring would-be violators more effectively and emphasizing consumer protection.
Imposes substantial per-violation fines. The new $2,500 fine applies to each illegal transaction, meaning unlicensed operators face rapidly escalating financial penalties, which could bankrupt repeat offenders and make illegal check-cashing far less attractive.
Strengthens enforcement and prosecutorial leverage. Classifying violations as felonies gives law enforcement and prosecutors stronger tools for investigation and prosecution, including the possibility of longer sentences and more severe criminal records for offenders.
Aims to protect vulnerable consumers. By cracking down on unlicensed operations, the bill helps ensure that individuals who rely on check-cashing services are dealing with regulated, accountable businesses, reducing the risk of fraud or exploitation.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Increase Unlicensed Check Cashing Penalties
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to banks
- Delivered to assembly
- Passed senateVote 61–1
- Advanced to third reading
- 2nd report cal.
- 1st report cal.648
- Referred to banks
- Returned to senate
- Died in assembly
- Referred to banks
- Delivered to assembly
- Passed senateVote 63–0
Show 4 earlier actions
- Advanced to third reading
- 2nd report cal.
- 1st report cal.1347
- Referred to banks
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Raise Check-Cashing Penalties
In Assembly Committee · Banks · Sponsor Crystal Peoples-Stokes
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2419
2017-2018 Regular Sessions
IN SENATE
January 13, 2017
Introduced by Sen. GRIFFO -- 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 Assembly, 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.
§ 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.
LBD03622-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
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
To create an E felony and monetary penalties for those who engage in cashing checks, drafts or money orders without a license.
Summary of 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 cashiers 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.
Legislative history
2015-16 - S. 3618 - Passed Senate/A. 3176 - Banks Committee
Fiscal implications
None.
Effective date
120 days after it becomes law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.