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Attention All Check Cashers!

By November 7, 2016Featured, General


In a letter dated April 14, 2016 to the MAFSC, a representative of the DLLR stated the following:
“Clearly, the Licensee must send a notice of dishonor no less than 10 days after the dishonor in order to collect a $35 collection fee. The Commissioner has taken the position that pursuant to the plain language in the notice in CL 15-803, a Licensee may collect a $35 collection fee after mailing the notice dishonor.” The letter continued that licensees have until May 1, 2016 to correct their business practices to comply with their interpretation of the collection fee statute and to begin maintaining records “… of all notices of dishonor with proof of the date of mailing, and dated receipts of the $35 collection fee…” This grace period until 5/1/2016 does not affect any action by the DLLR on this matter previously enacted or in progress.

BEST PRACTICES: In order to comply with the DLLR’s new mandates regarding collecting fees on dishonored checks, the following actions are recommended to bring your business into compliance:

1. Post a ‘clearly conspicuous notice’ of the liability for the collection fee.
Collections fee lobby sign
2. Only accept the face value of the dishonored check if payment for the dishonored check is being made within ten (10) days of the dishonor.
3. After 10 days from the date of dishonor, send notice of dishonor.
Notice of dishonor template
4. After sending the notice, you may collect up to a $35 collection fee.
5. Maintain certificate of mailing & letter sent.
6. Issue a dated receipt for payment and maintain as part of your records.
7. Maintain a record of the date of dishonor (copy of bank notice?)
8. Add written policy & procedures to your compliance manual.
Manual Insert

Additional related documents:
Links to relevant statutes
MAFSC Fax Notice
New restrictions and requirements regarding the collection of fees
Letter to MAFSC from DLLR

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