Thursday, September 17, 2015

California Check Cashing Regulations

Businesses in California that are licensed to cash checks for customers have to be licensed at the federal level by the United States Department of Justice. They also have to list all their transaction fees in a conspicuous place. Those fees, however, are set by the business owner, not the government.


Permits


Every owner of a check-cashing business in California has to apply for and receive a permit from the U.S. Dept. of Justice. All applications have to be in writing, signed by the applicant and state the business name, address and function. The applicant also has to be fingerprinted, pay a processing fee and undergo a background check.


Fees


The check-cashing business has to post a complete schedule of all fees that they charge for providing their services. The schedule, which each location sets individually, has to include the charges for check- cashing and obtaining money orders and any other service they offer, as well as what types of identification it requires from customers.


Permit Renewal


The business has to renew its check-cashing permit annually, beginning one year from the date the check-cashing business received its initial permit. The renewal application to the Department of Justice has to include a renewal fee which covers the processing of the application and the cost of checking the applicant's criminal record.


Permit Denial


An initial check-cashing permit or the a renewal of a permit will be denied by the Department of Justice if, during the background check, it is revealed that the applicant has a felony conviction involving dishonesty, fraud or deceit and that the conviction is substantially related to the function of the check- cashing business.


Exemptions


Permits are only applicable to businesses whose main purpose is cashing checks. Exempt from the law are credit unions, state and federal banks and industrial loan companies. Also exempt are retail stores that already charge a fee of up to $2 to cash checks or money orders for customers.

Tags: check-cashing business, Department Justice, background check, cash checks, check- cashing