Regulatory issue surrounding the Bad Check Restitution Program
February 6, 2013
The Cape & Islands District Attorney’s office was recently notified by the Commissioner of the Division of Banks that there was a regulatory issue surrounding the Bad Check Restitution Program.
The Commissioner informed us that the program which was in part being operated by Corrective Solutions was not in compliance with the Massachusetts Consumer Protection Act.
The four (4) District Attorney Offices that use this program had no reason to anticipate the Commissioner’s opinion as they believed in good faith that the Bad Check Restitution Program was permissibly operating under a Federal Exemption created by the Financial Services Regulatory Relief Act of 2006. The Massachusetts Consumer Protection Act does not include a state exemption analogous to the federal one.
District Attorney O’Keefe understands the importance of a program like this and is working with the Massachusetts District Attorneys’ Association to file legislation to cure the problem.
Until the issue is resolved, we are asking the merchants and public to file fraudulent check charges at the District Courts.