|Organization:||Division of Banks|
Cease Directive Mayfair Foods, Inc.
Table of Contents
Mayfair Foods, Allston, MA - Cease Directive
COMMONWEALTH OF MASSACHUSETTS
COMMISSIONER OF BANKS
CHECK CASHER LICENSING
In the Matter of
MAYFAIR FOODS, INC.
WHEREAS the Commissioner of Banks (Commissioner), having determined that Mayfair Foods, Inc. (Mayfair or Corporation), located at 506 Cambridge Street, Allston, Massachusetts has engaged, or is engaged in, or is about to engage in, acts or practices constituting violations of Massachusetts General Laws 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 General Laws chapter 169A, section 2.
FINDINGS OF FACT
- The Division of Banks (“Division”), through the Commissioner, has jurisdiction over the licensing and regulation of persons engaged in check cashing activity pursuant to Massachusetts General Laws chapter 169A, section 2.
- Mayfair has never obtained a check casher license from the Commissioner pursuant to General Laws chapter 169A, section 3, to engage in the business of a casher of checks for consideration in excess of one dollar per item at 506 Cambridge Street, Allston, Massachusetts.
- On September 5, 2017, an Examiner for the Division entered Mayfair at 506 Cambridge Street, Allston, Massachusetts.
- The Examiner witnessed the clerk cash checks for at least two separate customers.
- The clerk then told the Examiner that Mayfair will cash checks under $1,000 for a 2% fee, and checks $1,000 or greater for a 3% fee.
- The clerk also provided a sample check cashing receipt for a supposed check of $1,000. The receipt demonstrates the 3% fee. (Exhibit A)
- The Corporation has not implemented practices or procedures that would have prohibited the Corporation from charging consideration in excess of one dollar per item.
CONCLUSIONS OF LAW
- Based upon the information contained in paragraphs 2 through 7, Mayfair is acting as a “casher of checks” as that term is defined by the Division’s regulation 209 CMR 45.02.
- Based upon the information contained in paragraphs 2 through 7, Mayfair has unlawfully acted as a check casher for a consideration in excess of one dollar per transaction without a license from the Commissioner, in violation of General Laws chapter 169A, section 2.
- Based upon the information contained in paragraphs 2 through 7, the Commissioner has determined that Mayfair has engaged, or is about to engage in, acts or practices which warrant the belief that the Corporation 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 General Laws chapter 169A and the Division’s regulations at 209 CMR 45.00 et seq.
After taking into consideration the FINDINGS OF FACT and CONCLUSIONS OF LAW stated herein, it is hereby directed:
- Mayfair shall immediately cease from engaging directly or indirectly in the business of cashing checks, drafts, or money orders for a consideration in excess of one dollar per item, or otherwise acting as a check casher, without a license from the Commissioner, in violation of General Laws chapter 169A, section 2.
- Mayfair must submit a response within five (5) days of receipt of this Directive. The response submitted by Mayfair must also include a signed copy of the enclosed affidavit, attesting that Mayfair will immediately cease from acting as a check casher in Massachusetts.
- Mayfair 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, 2016 through the effective date of this Directive.
- Within 60 days of the effective date of this Cease Directive, Mayfair shall reimburse all persons for whom a check, draft, or money order was cashed in 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 Corporation has cashed a check, draft, or money order for a 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 Corporation to evidence reimbursements made to consumers, and the amount reimbursed to each individual.
- In no event shall Mayfair retain any consumer refund. If consumer refunds cannot be distributed for any reason after three (3) years from the effective date of this Order, then the Company shall turn over the unclaimed refunds to the Commonwealth’s Department of the Treasurer as unclaimed property in the name of the consumers, in accordance with the Division’s instructions.
BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS.
Dated at Boston, Massachusetts, this 21st day of September, 2017
By: Terence A. McGinnis
Commissioner of Banks
Commonwealth of Massachusetts