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The Oregon Administrative Rules contain OARs filed through October 15, 2014
 
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DEPARTMENT OF CONSUMER AND BUSINESS SERVICES,
DIVISION OF FINANCE AND CORPORATE SECURITIES

 

DIVISION 755

CHECK-CASHER RULES

General Provisions

441-755-0000

Definitions

For purposes of ORS 697.500 through 697.555 and the rules in Division 755:

(1) "Automated check-cashing machine" means an unstaffed communications terminal that cashes payment instruments and charges a fee.

(2) "Conspicuously post" means to place in plain and unobstructed public view in a location and in a way, including form and size and typeface, that any person seeking the services of a licensee could clearly and easily see and read the contents of the posted notice.

(3) "Control" means:

(a) In the case of a corporation, direct or indirect ownership or the right to control 25 percent or more of the voting shares of the corporation, or the ability to elect a majority of the directors;

(b) In the case of an entity other than a corporation, the ability to change the principles, policies or practices of the organization, whether through active or passive means.

(4) "Control persons" means the president, vice-president, secretary, treasurer, and directors of a corporation, partners, members, or persons with equivalent titles or duties.

(5) "Director" means the Director of the Department of Consumer and Business Services.

(6) "Licensed location" means a staffed or unstaffed place other than the principal place of business where the activity of cashing checks is conducted.

(7) "Mobile unit" means any vehicle or other movable means from which the business of cashing payment instruments is to be conducted.

(8) "Person" means an individual, partnership, company, corporation, association or any other form of legal entity, other than the state or any political subdivision of the state.

Stat. Auth.: ORS 697.550
Stats. Implemented: ORS 697.504, 697.510, & 697.526
Hist.: FCS 8-2007, f. & cert. ef. 11-30-07; FCS 3-2012, f. & cert. ef. 7-23-12

441-755-0010

Fees Payable to the Director

(1) All fees described in this rule must be payable to the Department of Consumer and Business Services, and submitted to the Director either by mail to the mailing address specified on the application form, in-person delivery to the address specified on the application form, or through online application or renewal when online transactions are available.

(2) An investigation fee in the amount of $150 must accompany every initial application for a check-casher license. An applicant that received a consumer finance or pawnbroker license from the Department of Consumer and Business Services, Division of Finance and Corporate Securities and that license is still valid and in good standing, using the same legal entity name and identifying the same control persons as on the check-casher license application, must pay an investigation fee of $75. The investigation fee is per application regardless of the number of locations being licensed. The investigation fee is nonrefundable.

(3) An initial license fee in the amount of $150 for each location where check-cashing activity will be conducted must also accompany every initial application for a check-casher license. The location where an applicant places or will place an automated check-cashing machine or the use of a mobile unit is a location that must be licensed. This fee must be paid for the principal place of business only if check-cashing activity will be conducted at this location. This initial license fee is nonrefundable.

(4) A renewal license fee in the amount of $150 for each location where check-cashing activity will be conducted must be paid by the licensee in the year the licensee's licenses expire. This fee is nonrefundable.

(5) The investigation fee is a one-time fee paid at the time of initial application. An initial license fee paid during December 2007 covers calendar years 2008 and 2009, if the license is issued. An initial license fee paid on or after January 2, 2008 covers the calendar year from the date the license is issued plus the following full calendar year. The license fee for an additional licensed location covers the remaining period until that licensee's current licenses expire. A renewal fee covers the two year period beginning on the day after the expiration date of the current license.

(6) For any compliance examination conducted by the Director:

(a) The check-cashing business will be billed for time spent preparing for, traveling to the location where the records are maintained, conducting, and completing a report on the examination by the Director's staff at the rate of $75 per hour per staff person, plus actual travel expenses; and

(b) If out-of-state travel is required to conduct the examination, actual travel expenses will include air fare, lodging, food, rental car at destination, and mileage to and from the Oregon airport.

(7) To avoid enforcement action against the licensee, the check-cashing business must pay the billed examination expenses no later than 30 days from the date of the invoice.

(8) By order, the Director may reduce the fees assessed during any specific biennial period, applying the reduction equally to all licensed locations.

Stat. Auth.: ORS 697.550
Stats. Implemented: ORS 697.512, 697.514 & 697.528
Hist.: FCS 8-2007, f. & cert. ef. 11-30-07

Licensing

441-755-0100

Initial Application

In addition to the items specified in ORS 697.510, an applicant must submit:

(1) The applicant’s business telephone number and fax number, if any;

(2) The mailing address for the applicant’s principal place of business, if different than the street address;

(3) The applicant’s taxpayer identification number;

(4) A statement of current financial condition, including a compiled balance sheet and profit-and-loss statement, or if the applicant is a newly formed entity, the source of funds to be used for check cashing activity;

(5) A resume or other document listing the past five (5) years work experience for control persons, or persons with equivalent duties for the applicant;

(6) Identifying information for control persons sufficient to conduct an investigation to determine the person's financial responsibility;

(7) Disclosures for the applicant and each person identified in section (5) of this rule, including dates and specific details, for any of the following events that occurred in the 10 years before the date the application is submitted:

(a) A felony conviction;

(b) A misdemeanor conviction involving fraud, misuse of money, or theft;

(c) An entry of a money judgment that currently remains entirely or partially unpaid;

(d) An administrative action in any state resulting in civil penalties or action taken against a license held by the person; or

(e) A voluntary or involuntary filing for bankruptcy protection;

(8) A listing of any other business regulated by the Division of Finance and Corporate Securities being conducted or to be conducted at the licensed location; and

(9) A copy of the check-cashing fees to be charged, and if the fee schedule will be different at some licensed locations, what fee schedule applies to which locations.

Stat. Auth.: ORS 697.550
Stats. Implemented: ORS 697.510
Hist.: FCS 8-2007, f. & cert. ef. 11-30-07; FCS 3-2012, f. & cert. ef. 7-23-12

441-755-0110

Licensing Exemptions

(1) A person engaging in the bona fide retail sale of goods or services, cashing checks only from time to time, and not purporting to be a check-cashing business, is exempted from licensing, regulatory fees and record keeping requirements.

(a) A person purports to be a check-cashing business if the person:

(A) Advertises its check-cashing service through radio, television, print media, or the Internet; or

(B) Places signs on the outside or facing outside of its retail location offering its check-cashing service to the public.

(b) A person cashes checks only from time to time when the number of checks cashed in a calendar year does not exceed three percent of the number of retail transactions at that retail location during the previous calendar year.

(2) A money transmitter licensed in Oregon that is conducting check-cashing activity is exempt from licensing and regulatory fees, but must keep records and provide annual reports. The exemption from licensing and regulatory fees extends to any location of the licensed money transmitter where:

(a) The location is listed in filings with the director;

(b) Revenue and expenses of that location are incorporated into the license money transmitter's annual financial statements; and

(c) The licensed money transmitter owns and operates, through its employees, that location.

Stat. Auth.: ORS 697.550
Stats. Implemented: ORS 697.502
Hist.: FCS 8-2007, f. & cert. ef. 11-30-07; FCS 3-2012, f. & cert. ef. 7-23-12

441-755-0120

When Initial Application Deemed Abandoned

(1) An initial application is deemed deficient when:

(a) Responses to questions on the application form created by the director are missing or incomplete;

(b) Additional documents or information specified in OAR 441-755-0100 are not submitted;

(c) Questions raised by the director to clarify information submitted are not answered; or

(d) Fees required by OAR 441-755-0020 are not submitted, or are submitted but not honored by the applicant's financial institution or credit card company.

(2) An initial application for a check-casher license is deemed abandoned if:

(a) The application has been on file for at least three months;

(b) The application is deficient; and

(c) The applicant has failed to respond to the director's written notice of warning of abandonment within 30 calendar days of the date of warning.

(3) Fees paid in connection with an abandoned registration will not be refunded.

(4) An applicant whose application has been abandoned may reapply by submitting a new application including new fees.

Stat. Auth.: ORS 697.550
Stats. Implemented: ORS 697.512 & 697.514
Hist.: FCS 8-2007, f. & cert. ef. 11-30-07; FCS 3-2012, f. & cert. ef. 7-23-12

441-755-0130

Renewal of License

(1) A licensee may renew its license or licenses by identifying any principal place of business and licensed locations being renewed, and paying the renewal fees specified in OAR 441-755-0010. New locations may be added during this process.

(2) Renewal fees must be actually received by the Director on or before the last business day in December. Fees submitted but subsequently not honored by the licensee’s financial institution or credit card company are considered not received.

(3) If not timely renewed, a license will automatically expire and become void without further action of the Director.

Stat. Auth.: ORS 697.550
Stats. Implemented: ORS 697.514
Hist.: FCS 8-2007, f. & cert. ef. 11-30-07

441-755-0140

Change of Licensed Location

(1) When a licensee wishes to change the place of business of a licensed location, the licensee must submit to the director the original license for that location, together with a written notice identifying the new location and the proposed effective date of the change. The proposed effective date may not be prior to the date of notice to the director. The licensee must make a photocopy of the current license and post it at the licensed location. The photocopied license is valid only until the effective date reflected on the amended license and is then void.

(2) The director will amend the license to reflect the new location and the effective date of the change and return an amended original license to the licensee.

(3) No fee is required for issuing an amended license.

Stat. Auth.: ORS 697.550
Stats. Implemented: ORS 697.510, 697.514, & 697.530
Hist.: FCS 8-2007, f. & cert. ef. 11-30-07; FCS 3-2012, f. & cert. ef. 7-23-12

441-755-0150

Material Changes

(1) A licensee must make written notification to the director if there is a material change to any information the licensee previously filed with the director.

(2) A material change includes the following:

(a) Change to or a new item required to be disclosed under OAR 441-755-0100(6);

(b) Change in form of ownership not resulting in a change of control;

(c) Change of address of the principal place of business;

(d) Discontinuing check-cashing activity at a licensed location;

(e) Change in fees charged;

(f) Identifying a significant error in the data provided in an annual report;

(g) Moving required records to a new location.

(3) Written notification must include the updated or corrected information, may be made by in-person delivery, mail or fax, and must be made within 30 calendar days of the occurrence of the material change.

Stat. Auth.: ORS 697.550
Stats. Implemented: ORS 697.510, 697.526 & 697.530
Hist.: FCS 8-2007, f. & cert. ef. 11-30-07; FCS 3-2012, f. & cert. ef. 7-23-12

441-755-0160

Assignment or Transfer of License Prohibited

(1) The following events will be considered an assignment or transfer of the license, which is prohibited by ORS 697.514:

(a) A change in control of the licensee;

(b) The sale or assignment of all or substantially all assets of the licensee's business to another person;

(c) The merger of a licensee with another business that is not a licensed check-casher; or

(d) A reorganization of the licensee's form of business entity into another form of business entity, if the reorganization results in a change of control.

(2) On the effective date of any event described in section (1) of this rule, the licensee's license or licenses become void, and the licensee must surrender the license or licenses to the director within 10 business days of the event.

(3) If the entity that survives the event described in section (1) of this rule desires and intends to engage in a check-cashing business, it may not engage in a check-cashing business under the former entity's license but must apply and qualify for the license as a new applicant. The application may be submitted prior to the effective date of the event described in section (1) of this rule.

Stat. Auth.: ORS 697.550
Stats. Implemented: ORS 697.514
Hist.: FCS 8-2007, f. & cert. ef. 11-30-07; FCS 3-2012, f. & cert. ef. 7-23-12

441-755-0170

Termination of License

(1) A licensee must notify the director in writing of its decision to cease operations as a check-cashing business within seven days of its decision, and return all licenses to the director within 30 days after it has voluntarily ceased operations in this state.

(2) A licensee that fails to timely renew or chooses not to renew the license of a licensed location must return that license to the director within 15 days of the expiration date of the license.

(3) A licensee that has had its license or licenses suspended or revoked by the director, following opportunity for hearing as provided in ORS 697.540(2), must return the suspended or revoked license or licenses within 15 days of being notified of the entry of the Final Order.

Stat. Auth.: ORS 697.550
Stats. Implemented: ORS 697.504, 697.514 & 697.540
Hist.: FCS 8-2007, f. & cert. ef. 11-30-07; FCS 3-2012, f. & cert. ef. 7-23-12

Business Activities

441-755-0200

Posting of Information

(1) A licensee must conspicuously post the following items at each licensed location:

(a) The license issued for that location by the Director; and

(b) The fees the licensee will charge customers.

(2) For an automated check-cashing machine, the items may be displayed on the terminal screen or permanently affixed to the machine.

(3) For a mobile unit, the items may be displayed in a window of the mobile unit when it is stopped during the check-cashing activity, or affixed to the outside of the mobile unit.

Stat. Auth.: ORS 697.550
Stats. Implemented: ORS 697.504 & 697.526
Hist.: FCS 8-2007, f. & cert. ef. 11-30-07

441-755-0210

Unfair or Deceptive Practices

It is an unfair or deceptive practice for a licensee to:

(1) Impose fees contrary to posted information at the location where the payment instrument is cashed.

(2) Refuse to accept valid and current government-issued photo identification presented by the customer, resulting in greater fees being charged to the customer.

(3) Charge fees other than the rate most favorable to the consumer when a payment instrument could fit into more than one category described in ORS 697.520.

(4) Limit the amount of cash provided to a customer or require a customer to receive a payment, in whole or in part, by a method that causes the customer to pay additional or further fees to the licensee or other persons. This section does not apply to a transaction initiated by a customer request for a money order or other alternative forms of payment.

(5) Require a customer to cash separate payment instruments in a manner to avoid the limitations on the fees that may be charged.

(6) Alter or delete any information on a cashed payment instrument.

(7) Charge check-cashing fees on a postdated payment instrument accepted from a customer in a payday loan transaction with a licensee that also holds a short-term lending license.

Stat. Auth.: ORS 697.550
Stats. Implemented: ORS 697.520 & 697.530
Hist.: FCS 8-2007, f. & cert. ef. 11-30-07; FCS 3-2012, f. & cert. ef. 7-23-12

441-755-0220

Responsibility for Actions at Licensed Locations

Regardless of the employment relationship between the licensee and any manager or staff person in a licensed location, the licensee will be held responsible for any check-cashing statute or rule violation that occurs in the licensed location. The licensee may not delegate or assign this responsibility by contract or otherwise.

Stat. Auth.: ORS 697.550
Stats. Implemented: ORS 697.540 & 697.542
Hist.: FCS 8-2007, f. & cert. ef. 11-30-07

Books and Records

441-755-0300

Required Books and Records

(1) For each payment instrument cashed, the licensee must record the following information:

(a) The face value amount of the payment instrument; and

(b) The fee charged.

(2) The information required in section (1) of this rule may be maintained manually or in electronic format.

(3) Records for all licensed locations may be maintained at the licensee's principal place of business.

Stat. Auth.: ORS 697.528 & 697.550
Stats. Implemented: ORS 697.526 & 697.528
Hist.: FCS 8-2007, f. & cert. ef. 11-30-07; FCS 7-2009, f. & cert. ef. 9-9-09; FCS 3-2012, f. & cert. ef. 7-23-12

441-755-0310

Annual Report

(1) To assist the director to determine whether examination of a licensee is necessary, each licensee must submit a report by April 1 for the previous calendar year's check-cashing activities for each licensed location, including:

(a) The total number of payment instruments cashed;

(b) The total amount of the face values of all payment instruments cashed; and

(c) The total amount of fees charged for all payment instruments cashed.

Stat. Auth.: ORS 697.528 & 697.550
Stats. Implemented: ORS 697.528
Hist.: FCS 8-2007, f. & cert. ef. 11-30-07; FCS 7-2009, f. & cert. ef. 9-9-09; FCS 3-2012, f. & cert. ef. 7-23-12

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