Cease Directive  Hidalgo Multiservices, Inc. Cease Directive

Date:	01/24/2025
Organization:	Division of Banks
Docket Number:	2025-001
Location:	Boston, Massachusetts

Whereas, the Commissioner of Banks (“Commissioner”), having determined that Hidalgo Multiservices, Inc. (“Hidalgo” or the “company”), located at 169 South Union Street, Lawrence, Massachusetts has engaged, or is engaged in, or is about to engage in, acts or practices constituting violations of Massachusetts General Laws (M.G.L.) chapter 169A and applicable regulations found at 209 CMR 45.00 et seq.

The Commissioner hereby issues the following Order to Cease and Desist pursuant to M.G.L. chapter 169A, section 9.

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. On or about June 10, 2011, the Division issued Hidalgo its check casher license.
3. Hidalgo did not seek renewal of its license during the annual renewal period for 2025, and therefore as of midnight on December 31, 2024, Hidalgo’s check casher license’s status was updated to Terminated-Failed to Renew.
4. On or about January 2, 2025, Hidalgo received an email from the Nationwide Multistate Licensing System (NMLS) reminding Hidalgo of its terminated licensing status and that it is no longer authorized to conduct check cashing services in Massachusetts.
5. On January 22, 2025, an examiner for the Division entered the premises of Hidalgo located at 169 South Union Street, Lawrence, Massachusetts.
6. The examiner inquired with the store clerk about whether the examiner could cash a check with Hidalgo.  
7. A store clerk relayed to the examiner that Hidalgo could cash checks. The examiner observed the same signage from prior visits to the location, displaying a percentage fee schedule for cashing personal / payroll and business checks. The examiner further observed the Division’s expired check cashing license behind the counter.
8. 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

1. Based upon the information contained in paragraphs 1 through 8, Hidalgo is acting as a “check casher” as that term is defined by the Division’s regulation 209 CMR 45.02.
2. Based upon the information contained in paragraphs 1 through 8, Hidalgo 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, since January 1, 2025.
3. Based upon the information contained in paragraphs 1 through 8, the Commissioner has determined that Hidalgo 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:

1. Hidalgo 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.
2. Hidalgo must submit a response within five (5) days of receipt of this Directive.  The response submitted by Hidalgo must also include a signed copy of the enclosed affidavit, attesting that Hidalgo 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.
3. Hidalgo 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, 2025 through the effective date of this Directive.
4. Hidalgo shall reimburse all person identified in paragraph 14 for whom a check, draft, or money order was cashed at 169 South Union Street, Lawrence, 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 Right to a Hearing

1. Hidalgo has the right to request a hearing to contest the charges described herein.  In order to request a hearing, Hidalgo 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 Hidalgo 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.

Mary L. Gallagher
Commissioner of Banks

Dated at Boston, Massachusetts, this 24th day of January, 2025.