What's happening
This bill increases penalties for unlicensed check cashing businesses, making violations a class E felony with higher fines.
Why it matters
Classifying unlicensed check cashing as a felony raises the stakes significantly for violators, making prosecution and sentencing much more severe than under the previous misdemeanor status. This could deter not just casual or accidental violations, but also organized or repeat offenders.
The mandatory fine of $2,500 per illegal transaction can quickly add up, especially for businesses that process multiple checks—potentially resulting in crippling financial penalties and creating a strong economic disincentive for operating without a license.
By treating unlicensed check cashing more seriously, the bill aims to protect consumers from predatory operators and shady financial practices, ensuring that only regulated and vetted entities handle these sensitive transactions.
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Who cares
Headline styles
Tougher Penalties for Unlicensed Check Cashers
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to banks
- Referred to banks
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3838
2019-2020 Regular Sessions
IN SENATE
February 19, 2019
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.
LBD08541-01-9
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 consum- ers will be protected to the full extent of the law.
Legislative history
2015-16 - S. 3618 - Passed Senate/A. 3176 - Banks Committee 2017-18 - S. 2419 - Passed Senate/A. 1940 - 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.