Findings of Fact
1. The Division of Banks (“Division”), through the Commissioner, has jurisdiction over the licensing and regulation of persons or entities engaged in cashing checks, drafts, or money orders for a consideration in excess of one dollar per item pursuant to M.G.L. chapter 169A.
2. According to records maintained on file with the Division and the Nationwide Multi-State Licensing System and Registry (“NMLS”), Julie’s Check Cashing has never obtained a license from the Commissioner, pursuant to General Laws chapter 169A, section 2, to engage in cashing checks, drafts, or money orders for consideration in excess of one dollar per item.
3. On June 27, 2022, an examiner for the Division entered the premises of a supply and food store located at 716 Middlesex Street, Unit 3, Lowell, Massachusetts.
4. The examiner inquired with the store clerk about whether the examiner could cash a check within the store.
5. The store clerk told the examiner that the store was not able to cash checks; however, an individual named “Julie” was the point of contact for check cashing.
6. The store clerk then utilized a telephone to contact and have a conversation with an individual named “Julie”. Following the conversation, the store clerk informed the examiner that “Julie” stated, in exchange for the service of cashing checks, “Julie” charged consumers 2.0% and 3.0% of the check amount for personal/payroll checks and business checks, respectively.
7. The examiner also obtained a business card displayed at the store for “Check Cashing” and contained contact information for “owner” Julie Sinarong with the identical address of the store, which was 716 Middlesex Street, Unit 3, Lowell, Massachusetts.
8. According to records maintained on file with the Massachusetts Secretary of State, on or about October 21, 2019, Julie’s Check Cashing was incorporated in Massachusetts with “check cashing services” as the description of the type of business in which the company intended to engage and contained a street address of the principal office of the company at 716 Middlesex Street, Lowell, MA, 01851. Additionally, the name of the initial registered agent at the registered office is “Julie Lor Sinarong” who is also listed as the President, Treasurer, Secretary, and Director of the company.
9. According to records maintained on file with the Massachusetts Secretary of State, on or about March 10, 2020, Julie’s Check Cashing changed the name of their company to “Middlesex General Service Inc.”, which was subject to involuntary dissolution by court order or the Secretary of the Commonwealth on or about December 31, 2021.
10. The Company has not implemented practices or procedures that would have prohibited the Company from charging consideration in excess of one dollar per item.
Conclusions of Law
11. Based upon the information contained in paragraphs 1 through 10, Julie’s Check Cashing is acting as a “check casher” as that term is defined by the Division’s regulation 209 CMR 45.02.
12. Based upon the information contained in paragraphs 1 through 10, Julie’s Check Cashing has unlawfully acted as a check casher for consideration in excess of one dollar per transaction without a license from the Commissioner, in violation of M.G.L. chapter 169A, section 2.
13. Based upon the information contained in paragraphs 1 through 10, the Commissioner has determined that Julie’s Check Cashing has engaged, or is about to engage in, acts or practices which warrant the belief that the Company is not operating honestly, fairly, soundly, and efficiently in the public interest in violation of standards governing the licensing and conduct of a check casher including, but not limited to, the provisions under M.G.L. 169A and the Division’s regulations at 209 CMR 45.00 et seq.
Cease Directive
After taking into consideration the FINDINGS OF FACT and CONCLUSIONS OF LAW stated herein, it is hereby directed:
14. Julie’s Check Cashing shall immediately cease from engaging directly or indirectly in the business of cashing checks, drafts, or money orders for consideration in excess of one dollar per item, or otherwise acting as a check casher, without a license from the Commissioner, in violation of M.G.L. chapter 169A, section 2.
15. Julie’s Check Cashing must submit a response within five (5) days of receipt of this Directive. The response submitted by Julie’s Check Cashing must also include a signed copy of the enclosed affidavit, attesting that Julie’s Check Cashing will immediately cease from acting as a check casher in Massachusetts, as that term is defined by the Division’s regulation 209 CMR 45.02.
16. Julie’s Check Cashing shall within five (5) days of the effective date of this Directive provide the Division with a complete accounting of all checks, drafts, and money orders cashed at its place of business January 1, 2020 through the effective date of this Directive.
17. Julie’s Check Cashing shall reimburse all person identified in paragraph 16 for whom a check, draft, or money order was cashed at 716 Middlesex Street, Unit 3, Lowell, Massachusetts without a license from the Commissioner. Reimbursements shall be made to each person on a per transaction basis in an amount equal to the total fee charged on the transaction less one dollar. A record shall be provided to the Division of the names and addresses of all individuals for whom the Company has cashed a check, draft, or money order for consideration in excess of one dollar, the amount of each check, draft, or money order, the total fees charged on each transaction, check numbers of payments issued by the Company to evidence reimbursements made to consumers, and the amount reimbursed to each individual.
Notice of a Right to a Hearing
18. Julie’s Check Cashing has the right to request a hearing to contest the charge(s) described herein. In order to request a hearing, Julie’s Check Cashing or its authorized representative is required to file a notice of claim for an Adjudicatory Proceeding within thirty (30) days of the effective date of this Cease Directive, pursuant to the Standard Adjudicatory Rules of Practice and Procedure, 801 CMR 1.01(6)(b) and (c). If requested, the hearing would be conducted according to M.G.L., chapter 30A, sections 10 and 11, and the Standard Adjudicatory Rules of Practice and Procedure, 801 CMR 1.00. If Julie’s Check Cashing does not file a notice of claim for an Adjudicatory Proceeding within thirty (30) days of the effective date of this Cease Directive, the Company will permanently lose the right to contest the charge(s) described herein.
BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS.
Dated at Boston, Massachusetts, this 11th day of October, 2022.
By:
Mary L. Gallagher
Commissioner of Banks
