| Date: | 03/11/2020 |
|---|---|
| Organization: | Division of Banks |
| Docket Number: | 2020-002 |
WHEREAS the Commissioner of Banks (Commissioner), having determined that Tanya Corporation d/b/a Low Price Convenience (Low Price Convenience or Company), located at 870 N Main Street Suite 4, Fall River, 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
1. The Division of Banks ("Division"), through the Commissioner, has jurisdiction over the licensing and regulation of persons engaged in the business of a foreign transmittal agency pursuant to Massachusetts General Laws chapter 169.
2. According to the Division’s records, Low Price Convenience has been an authorized foreign transmittal agent location for foreign transmittal company Western Union Financial Services, Inc. since 2008. As an authorized agent, Low Price Convenience is only authorized to transmit consumer funds through Western Union Financial Services, Inc.
3. 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.
4. Low Price Convenience 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 870 N Main Street Suite 4, Fall River, Massachusetts.
5. On February 21, 2020, an examiner for the Division entered Low Price Convenience.
6. The examiner inquired with the store clerk about cashing an assumed check in the amount of $1,500.00.
7. The store clerk acknowledged that Low Price Convenience could cash the aforementioned assumed check for a fee of $120.00. Additionally, the store clerk informed the examiner that consumers need to wait three days to receive cash when the amount of the check concerned is greater than $1,000.00.
8. The examiner also inquired with the store clerk about the fee for cashing a check in the amount of $1,000.00. The store clerk referenced a check cashing fee schedule posted behind the store clerk’s counter and told the examiner the fee would be $50.00.
9. The fees described in the check cashing fee schedule ranged from $3.00 to $50.00 for check amounts between $100.00 and $1,000.00. The check cashing fee schedule also instructed the store clerk to contact the owner for additional fee information relating to check amounts exceeding $1,000.00.
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 2 through 9, Low Price Convenience is acting as a “casher of checks” as that term is defined by the Division’s regulation 209 CMR 45.02.
12. Based upon the information contained in paragraphs 2 through 9, Low Price Convenience 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 General Laws chapter 169A, section 2.
13. Based upon the information contained in paragraphs 1 through 10, the Commissioner has determined that Low Price Convenience 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 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:
14. Low Price Convenience 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 casher of checks, without a license from the Commissioner, in violation of General Laws chapter 169A, section 2.
15. Low Price Convenience must submit a response within five (5) days of receipt of this Directive. The response submitted by Low Price Convenience must also include a signed copy of the enclosed affidavit, attesting that Low Price Convenience will immediately cease from acting as a casher of checks in Massachusetts.
16. Low Price Convenience 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, 2019 through the effective date of this Directive.
17. Low Price Convenience shall reimburse all persons for whom a check, draft, or money order was cashed at 870 N Main Street Suite 4, Fall River, 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
18. Low Price Convenience has the right to request a hearing to contest the charges described herein. In order to request a hearing, Low Price Convenience 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 Low Price Convenience 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 charges described herein.
By ORDER AND direction of the Commissioner of Banks.
Dated at Boston, Massachusetts, this 10th day of March, 2020.
Mary L. Gallagher
Commissioner of Banks