This chapter is known as the "Check Cashing Registration Act."
Enacted by Chapter 144, 1999 General Session
As used in this chapter:
(1) "Business of a check casher"
(a) cashing a check for consideration; or
(b) extending a deferred
(2) "Check" is as defined in Section 70A-3-104.
(3) "Check casher" means a person that engages in the business of a
(4) "Deferred deposit loan" means a transaction where:
(a) a person:
(i) presents to a check casher a check written on that person's
(ii) provides written or electronic authorization to a check casher
to effect a debit from that person's account using an electronic payment; and
(b) the check casher:
(i) provides the maker an amount of money that is equal
to the face value of the check or the amount of the debit less any fee or interest
charged for the transaction; and
(ii) agrees not to cash the check or process
the debit until a specific date.
(5) (a) "Electronic payment" means
any electronic method by which a check casher:
(i) accepts a payment from
a person; or
(ii) makes a payment to a person.
(b) "Electronic payment"
includes a payment made through:
(i) an automated clearing house transaction;
(ii) an electronic check;
(iii) a stored value card; or
(iv) an Internet
(6) "Rollover" means the extension or renewal of the term
of a deferred deposit loan.
(1) (a) It is unlawful for a person to engage in the business
of a check casher in Utah or with a Utah resident unless the person:
with the department in accordance with this chapter; and
(ii) maintains a
(b) It is unlawful for a person to operate a mobile facility
in this state to engage in the business of a check casher.
Subsection (1)(a), a person that is engaged in the business of a check casher
in this state on May 3, 1999, is not required to be registered under this section
until July 1, 1999.
(2) (a) A registration and a renewal of a registration
expires on April 30 of each year unless on or before that date the person renews
(b) To register under this section, a person shall:
(i) pay an original registration fee established under Subsection 7-1-401(8);
(ii) submit a registration statement containing the information described
in Subsection (2)(d).
(c) To renew a registration under this section, a person
(i) pay the annual fee established under Subsection 7-1-401(5); and
(ii) submit a renewal statement containing the information described in Subsection
(d) A registration or renewal statement shall state:
(i) the name
of the person;
(ii) the name in which the business will be transacted if different
from that required in Subsection (2)(d)(i);
(iii) the address of the person's
principal business office, which may be outside this state;
(iv) the addresses
of all offices in this state at which the person conducts the business of a check
(v) if the person conducts the business of a check casher in this
state but does not maintain an office in this state, a brief description of the
manner in which the business is conducted;
(vi) the name and address in this
state of a designated agent upon whom service of process may be made;
disclosure of any injunction, judgment, administrative order, or conviction of
any crime involving moral turpitude with respect to that person or any officer,
director, manager, operator, or principal of that person; and
(viii) any other
information required by the rules of the department.
(3) If the information
in a registration or renewal statement required under Subsection (2) becomes inaccurate
after filing, a person is not required to notify the department until:
that person is required to renew the registration; or
(b) the department specifically
requests earlier notification.
(4) In accordance with Title 63, Chapter 46a,
Utah Administrative Rulemaking Act, the department may make rules consistent with
this section providing for the form, content, and filing of a registration and
7-23-104. Posting of fee schedules for cashing checks.
(1) A check casher shall post a complete schedule of all fees for cashing a check
in a conspicuous location on its premises that can be viewed by a person cashing
(2) The schedule of fees required to be posted under Subsection (1)
shall state the fees using dollar amounts.
7-23-105. Operational requirements
for deferred deposit loans.
(1) If a check casher extends a deferred deposit
loan, the check casher shall:
(a) post in a conspicuous location on its premises
that can be viewed by a person seeking a deferred deposit loan:
(i) a complete
schedule of any interest or fees charged for a deferred deposit loan that states
the interest and fees using dollar amounts;
(ii) a number the person can call
to make a complaint to the department regarding the deferred deposit loan; and
(iii) a list of states where the check casher is registered or authorized to offer
deferred deposit loans through the Internet or other electronic means;
enter into a written contract for the deferred deposit loan;
disclose in the written contract that, under Subsection (4)(b), the deferred deposit
loan may not be rolled over beyond 12 weeks after the day on which the deferred
deposit loan is executed;
(d) provide the person seeking the deferred deposit
loan a copy of the deferred deposit contract;
(e) orally review with the person
seeking the deferred deposit loan the terms of the deferred deposit loan including:
(i) the amount of any interest rate or fee;
(ii) the date on which the full
amount of the deferred deposit loan is due; and
(iii) the fact that the deferred
deposit loan may not be rolled over beyond 12 weeks after the day on which the
deferred deposit loan is executed; and
(f) comply with:
(i) Truth in Lending
Act, 15 U.S.C. Sec. 1601 et seq.;
(ii) Equal Credit Opportunity Act, 15 U.S.C.
Sec. 1691; and
(iii) Title 70C, Utah Consumer Credit Code.
(2) If a check
casher extends a deferred deposit loan through the Internet or other electronic
means, the check casher shall provide the information described in Subsection
(1)(a) to the person receiving the deferred deposit loan in a conspicuous manner
prior to the completion of the deferred deposit loan.
(3) A check casher that
engages in a deferred deposit loan shall permit a person receiving a deferred
deposit loan to:
(a) make partial payments in increments of at least $5 on
the principal owed on the deferred deposit loan at any time prior to maturity
without incurring additional charges above the charges provided in the written
(b) rescind the deferred deposit loan without incurring any
charges by returning the deferred deposit loan amount to the check casher on or
before 5 p.m. the next business day following the loan transaction.
check casher that engages in a deferred deposit loan may not:
additional interest on a deferred deposit loan with an outstanding principal balance
12 weeks after the day on which the deferred deposit loan is executed;
rollover a deferred deposit loan if the rollover requires a person to pay the
amount owed by the person under a deferred deposit loan in whole or in part more
than 12 weeks from the day on which the deferred deposit loan is first executed;
(c) threaten to use or use the criminal process in any state to collect
on the deferred
(5) Notwithstanding Subsections (4)(a) and
(4)(c), a check casher that is the holder of a check, draft, order, or other instrument
that has been dishonored may use the remedies and notice procedures provided in
Title 7, Chapter 15, Dishonored Instruments.
7-23-105.1. Electronic disbursement
If a check casher collects payment on a deferred deposit
loan through an electronic payment, the check casher shall, on the day the loan
(1) credit the amount of the deferred deposit loan through an
electronic payment to the person receiving the deferred deposit loan; or
make the amount of the deferred deposit loan immediately available to the person
receiving the deferred deposit loan.
by department -- Rulemaking.
Subject to the requirements of Title 63, Chapter
46b, Administrative Procedures Act, the department may:
(1) (a) receive and
act on complaints;
(b) take action designed to obtain voluntary compliance
with this chapter;
(c) commence administrative or judicial proceedings on
its own initiative to enforce compliance with this chapter; or
(d) take action
against any check casher that fails to:
(i) respond to the department, in
writing within 30 days, to a complaint; or
(ii) submit information as requested
by the department;
(2) counsel persons and groups on their rights and duties
under this chapter;
(3) make rules to:
(a) restrict or prohibit lending
or servicing practices that are misleading, unfair, or abusive;
or assure fair and full disclosure of the terms and conditions of agreements and
communications between check cashers and customers; or
(c) promote or assure
uniform application of or to resolve ambiguities in applicable state or federal
laws or federal regulations; and
(4) employ hearing examiners, clerks, and
other employees and agents as necessary to perform its duties under this chapter.
7-23-107. Examination of books, accounts, and records by the department.
(1) At least once every calendar year the department shall, for each premise engaging
in the business of a check casher:
(a) examine the books, accounts, and records;
(b) make investigations to determine compliance with this chapter.
(2) In accordance with Section 7-1-401, the check casher shall pay a fee for an
examination conducted under Subsection (1).
person who violates this chapter or who files materially false information with
a registration or renewal under Section 7-23-103 is:
(a) guilty of a class
B misdemeanor; and
(b) subject to revocation of a person's registration under
(2) Subject to Title 63, Chapter 46b, Administrative Procedures
Act, if the department determines that a person is engaging in the business of
cashing checks in violation of this chapter, the department may:
that person's registration under this chapter;
(b) issue a cease and desist
order from committing any further violations; or
(c) prohibit the person from
continuing to engage in the business of a check casher.
7-23-109. Civil liability.
Nothing in this chapter is intended to limit any civil liability that may exist
against a check casher for:
(1) breach of contract;
(2) violation of federal
(3) other unlawful act.
are not subject to the requirements of this chapter:
(1) a depository institution;
(2) a depository institution holding company;
(3) an institution directly
or indirectly owned or controlled by one or more:
(a) depository institutions;
(b) depository institution holding companies; or
(4) a person that
cashes a check in a transaction:
(a) that is incidental to the retail sale
of goods or services; and
(b) for consideration that does not exceed the greater
(i) 1% of the amount of the check; or