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Cease Directive

Cease Directive Reyes Check Cashing (Reyes Check Cashing or Corporation)

Date: 06/20/2018
Organization: Division of Banks
Location: Chelsea, MA

Reyes Check Cashing (Reyes Check Cashing or Corporation) - Cease Directive

WHEREAS the Commissioner of Banks (Commissioner), having determined that Reyes Check Cashing (Reyes Check Cashing or Corporation), located at 411 Broadway, Chelsea, Massachusetts have engaged, or are engaged in, or are 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

  1. 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.
  2. Reyes Check Cashing 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 411 Broadway, Chelsea, Massachusetts.
  3. On May 22, 2018 the Division held a public hearing at the Chelsea Public Library in regards to an application by another entity to receive a license to run a check cashing business.
  4. Kizzi Reyes and Antonio Reyes spoke at the public hearing and stated that they conducted check cashing at Reyes Check Cashing.
  5. On June 1, 2018, Division personnel called Reyes Check Cashing without identifying that she works for the Division.
  6. In response to the Division’s inquiries, the person answering the phone indicated that they do cash checks and charge two percent for payroll check and three percent for tax refund checks.
  7. 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

  1. Based upon the information contained in paragraphs 2 through 7, Reyes Check Cashing is acting as a  “casher of checks” as that term is defined by the Division’s regulation 209 CMR 45.02.
  2. Based upon the information contained in paragraphs 2 through 7, Reyes Check Cashing 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.
  3. Based upon the information contained in paragraphs 2 through 7, the Commissioner has determined that Reyes Check Cashing 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.

CEASE DIRECTIVE

After taking into consideration the FINDINGS OF FACT and CONCLUSIONS OF LAW stated herein, it is hereby:

  1. Reyes Check Cashing 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.
  2. Reyes Check Cashing must submit a response within five (5) days of receipt of this Directive.  The response submitted by Reyes Check Cashing must also include a signed copy of the enclosed affidavit, attesting that Reyes Check Cashing will immediately cease from acting as a check casher in Massachusetts.
  3. Reyes 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, 2018 through the effective date of this Directive.
  4. Reyes Check Cashing shall reimburse all persons for whom a check, draft, or money order was cashed at 411 Broadway, Chelsea, 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.

NOTICE OF RIGHT TO A HEARING

  1. Reyes Check Cashing has the right to request a hearing to contest the charges described herein.  In order to request a hearing, Reyes 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 Practices and Procedures, 801 CMR 1.01(6)(b) and (c).  If requested, the hearing would be conducted according to General Laws, chapter 30A, sections 10 and 11, and the Standard Adjudicatory Rules of Practice and Procedure, 801 CMR 1.01 and 1.03.  If Reyes 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 Corporation will permanently lose the right to contest the charges described herein.

By ORDER AND direction of the Commissioner of Banks.

Dated at Boston, Massachusetts, this 20th day of June, 2018.

Terence A. McGinnis

Commissioner of Banks

 

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