|Organization:||Division of Banks|
Consent Order All Checks Cashed, Inc.
Table of Contents
All Checks Cashed, Inc., Dorchester, MA - Consent Order
COMMONWEALTH OF MASSACHUSETTS
COMMISSIONER OF BANKS
CHECK CASHER LICENSING
Docket No. 2010-072
In the Matter of
ALL CHECKS CASHED, INC.
Check Casher License Nos. CC0207 et al.
WHEREAS, the Division of Banks ("Division") obtained information from All Checks Cashed, Inc., Dorchester, Massachusetts, a licensed check casher under Massachusetts General Laws chapter 169A and 209 CMR 45.00 et seq. ("All Checks Cashed" or the "Corporation") on December 30, 2009, January 4, 2010, and January 19, 2010 pertaining to the participation of All Checks Cashed and its customers in the Secure Check Program (the "Program") offered through MB Financial Bank, N.A., a national bank headquartered in Illinois ("MB Financial").
WHEREAS, All Checks Cashed has been advised by representatives of the Division of Banks ("Division") that the Division has concerns with respect to the participation of All Checks Cashed in the Program.
WHEREAS, All Checks Cashed has entered into a STIPULATION AND CONSENT TO THE ISSUANCE OF A CONSENT ORDER ("Consent Agreement") with the Division dated July 16, 2010, whereby, solely for the purpose of settling this matter, and without admitting any allegations or implications of fact or the existence of any violation of state or federal laws and regulations governing the conduct and operation of a check casher, All Checks Cashed agrees to the issuance of this CONSENT ORDER ("Consent Order") by the Commissioner of Banks ("Commissioner").
WHEREAS, the information obtained from All Checks Cashed disclosed that the Program included the creation of a banking relationship for customers of All Checks Cashed with MB Financial for the direct deposit of certain government issued benefit checks including social security, disability, and other government benefits.
WHEREAS, the information obtained from All Checks Cashed disclosed that the Program provided for the establishment by MB Financial of non-interest bearing deposit account for the initial deposit of benefit recipients, and a fiduciary account in the name of All Checks Cashed, where All Checks Cashed would be acting in the capacity of a fiduciary or trustee, for the subsequent transfer of the benefit payment, which is made available for withdrawal in the form of a check at All Checks Cashed.
WHEREAS, onsite visitations of several All Checks Cashed branch locations noted signage in the lobby advertising "Get Your Government Checks 4 Days Early: Ask About Our Secure Check Direct Deposit Program!"
WHEREAS, information from All Checks Cashed on June 2, 2010 indicates that it has terminated future participation in the Program, will not charge any fee for cashing checks issued to recipients under the Program, and will provide reasonable notice and assistance to those of its customers who opened accounts at MB Financial through the Program to enable them to close those accounts and choose a different method of receiving their government benefits.
NOW COME the parties in the above-captioned matter, the Division, and All Checks Cashed, and stipulate and agree as follows:
- Immediately upon the execution of this Consent Order, All Checks Cashed shall cease or continue the cessation of all solicitation and advertising for the Program.
- All Checks Cashed shall establish the following procedures within 15 days of the effective date of this Consent Order for the wind-down of the direct deposit bank account relationship between all customers that joined the Program and opened accounts at MB Financial through All Checks Cashed. The procedures shall include: (i) providing written notification to existing direct deposit customers by mail and by hand delivery to all such customers who appear in person at an All Checks Cashed location; such notification to be in substantially the form attached hereto as Exhibit A, setting forth detailed information on the account termination process; (ii) posting of signs in all licensed locations stating that the Secure Check direct deposit program offered through MB Financial Bank has been terminated; and (iii) providing to the Division written certification that written notification described in Paragraph 2(i) above has been provided to all recipients that opened accounts through All Checks Cashed at MB Financial.
- All Checks Cashed shall refrain from entering into a relationship with any other financial institution to offer direct deposit services of social security, disability, or other government benefit checks without providing the Division at least thirty (30) days prior written notice to the Division, which notice shall contain a full and complete description of any such proposed relationship, copies of all material documentation relating thereto, and any other information requested by the Division. The Division shall conduct a review of the documentation to ascertain whether the proposed program would be in compliance with relevant laws and regulations and whether such program would be operated fairly, soundly and efficiently in the public interest. The Division shall thereafter make a determination of compliance, as noted above, and shall submit its findings, in writing, to All Checks Cashed.
- All Checks Cashed shall comply with all laws and regulations applicable to conducting the business of a check casher in Massachusetts, including , but not limited to, Massachusetts General Laws chapter 169A, the Division's regulations 209 CMR 45.00 et seq., 209 CMR 31.00 et seq., and The Bank Secrecy Act ("BSA") and its implementing regulation at 31 CFR Part 103.
- The provisions of this Consent Order shall not limit, estop, or otherwise prevent the Division, or any other state agency or department, from taking any other action affecting All Checks Cashed or any of its officers and directors, or their successors or assigns if All Checks Cashed fails to fully and promptly comply with the above provisions.
- This Consent Order shall become effective immediately upon the date of its issuance.
- The provisions of this Consent Order shall be binding upon All Checks Cashed, its officers and directors, their successors and assigns, and those persons in active participation with it, directly or indirectly, acting individually or through any corporate or other entity.
- The provisions of this Consent Order shall remain effective and enforceable except to the extent that, and until such time as, any provisions of this Consent Order shall have been modified, terminated, suspended, or set aside by the Commissioner or upon an order of a court of competent jurisdiction.
- This Consent Order and the Consent Agreement are the complete documents representing the resolution of this matter. There are no other agreements, promises, representations, or warranties other than those set forth in this Consent Order.
BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS.
Dated at Boston, Massachusetts, this 16th day of June, 2010
By: Steven L. Antonakes
Commissioner of Banks
Commonwealth of Massachusetts
THIS CONSENT ORDER WAS TERMINATED ON OCTOBER 13, 2011