(a) Before a licensee deposits with any financial institution a payment instrument that is cashed by a licensee, the item must be endorsed with the actual name under which the licensee is doing business. Additionally, the words “Licensed Check Cashing Business” must be written legibly or stamped immediately after or below the name of the endorser.
Deposit: means a deposit of money, bonds or other things of value, creating a debtor-creditor relationship. See Tennessee Code 45-1-103
Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
Item: means any instrument for the payment of money, even though not negotiable, but does not include money. See Tennessee Code 45-1-103
Licensee: means a check cashing business licensed by the commissioner to engage in that business in accordance with this chapter. See Tennessee Code 45-18-102
Payment instrument: means a check, draft, warrant, money order, traveler's check or other instrument for payment of money, whether or not negotiable. See Tennessee Code 45-18-102
Person: means any individual, partnership, association, trust, corporation, limited liability company, or other group, however organized, but does not include the governments of the United States or this state or any department, agency, or instrumentality thereof. See Tennessee Code 45-18-102
State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
written: includes printing, typewriting, engraving, lithography, and any other mode of representing words and letters. See Tennessee Code 1-3-105
(b) Licensees shall comply with all applicable federal statutes governing currency transaction reporting.(c) Every licensee shall display its license and post a notice containing its charges for services regulated under this chapter.(d) Licensees may not alter or delete the date on any check cashed.(e) Licensees shall issue a receipt for each check cashing transaction upon request. The receipt shall include, among other matters the licensee may desire to include, the amount of the check and the total fee charged.(f) The maximum fee a licensee may charge for a bad check is twenty dollars ($20.00).(g) No licensee may advertise, print, display, publish, distribute, or broadcast, or cause or permit to be advertised, printed, displayed, published, distributed, or broadcast, any statement or representation that is false, misleading, or deceptive, or that omits material information.(h) Within ten (10) business days after being advised by the payor financial institution that a payment instrument has been altered, forged, stolen, obtained through fraudulent or illegal means, negotiated without proper legal authority, or represents the proceeds of illegal activity, the licensee shall notify the police department in the city or town where the office of the licensee is located at which the check was cashed. If a payment instrument is returned to the licensee by the payor financial institution for any of the aforementioned reasons, the licensee may not release the payment instrument without the consent of the city or town police department, or other investigative law enforcement authority.(i) No licensee shall issue coupons, gift certificates or tokens to be used in lieu of money when cashing a check.(j) No licensee shall require the customer to receive payment by a method that causes the customer to pay additional or further fees and charges to the licensee or other person.(k) No licensee shall conduct a business regulated under this chapter at a location other than the licensed location.(l) No licensee shall receive any other charges or fees in addition to the fees listed in this chapter.(m) Licensees shall pay to every customer tendering a payment instrument to be cashed the entire face amount of the instrument in cash, less any charges permitted by law, on the same date upon which the instrument is presented.(n) Licensees shall not require that a customer cash two (2) separate checks in a manner to avoid the limitations on the fees a licensee can charge.(o) No check casher shall:
(1) Charge check cashing fees, except as otherwise provided in this chapter, in excess of five percent (5%) of the face amount of the payment instrument or five dollars ($5.00), whichever is greater;(2) Charge check cashing fees in excess of three percent (3%) of the face amount of the payment instrument, or two dollars ($2.00), whichever is greater, if the payment instrument is the payment of any kind of state public assistance or federal social security benefit payable to the bearer of the payment instrument; or(3) Charge check cashing fees for personal checks or money orders in excess of ten percent (10%) of the face amount of the personal check or money order or five dollars ($5.00), whichever is greater.(p) No licensee shall agree to hold a payment instrument for later deposit.(q) Licensees may charge a customer with a one-time membership fee not to exceed ten dollars ($10.00).
