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Current Status Bill Number:View additional legislative information at the LPITS web site.363 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:19990120 Primary Sponsor:Grooms All Sponsors:Grooms Drafted Document Number:l:\s-res\lkg\001chec.kad.doc Residing Body:Senate Current Committee:Banking and Insurance Committee 02 SBI Subject:Deferred presentment services, check- cashing services; Banks and Savings and Loan Associations, Checks History Body Date Action Description Com Leg Involved ______ ________ ______________________________________ _______ ____________ Senate 19990120 Introduced, read first time, 02 SBI referred to Committee Versions of This Bill
TO AMEND SECTION 34-39-180, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFERRED PRESENTMENT SERVICES, SO AS TO DELETE THE PROVISION WHICH STATES THAT AN INDIVIDUAL WHO ISSUES A PERSONAL CHECK TO A LICENSEE UNDER A DEFERRED PRESENTMENT AGREEMENT IS NOT SUBJECT TO CRIMINAL PENALTY; AND TO AMEND SECTION 34-41-60, AS AMENDED, RELATING TO CHECK CASHING SERVICES, SO AS TO DELETE THE REQUIREMENT THAT EACH CHECK CASHIGN TRANSACTION MUST BE DOCUMENTED BY A WRITTEN AGREEMENT.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 2. Section 34-39-180(G) of the 1976 Code, as added by Act 433 of 1998, is further amended to read:
"(G) If a check is returned to the licensee from a payer financial institution due to insufficient funds, closed account, or stop payment order, the licensee may pursue all legally available civil means to collect the check including, but not limited to, the imposition of a returned check charge as provided in Section 34-11-70(a), except that the service charge imposed by the licensee shall not exceed the lesser of ten dollars or the fee imposed by the financial institution on the licensee for the returned check. An individual who issues a personal check to a licensee under a deferred presentment agreement is not subject to criminal penalty."
SECTION 2. Section 34-41-60 of the 1976 Code, as added by Act 433 of 1998, is further amended to read:
"Section 34-41-60. (A) Notwithstanding any other provision of law, a check-cashing service licensed pursuant to this chapter may not directly or indirectly charge or collect fees or other consideration for check-cashing services in excess of the following:
(1) two percent of the face amount of the check or three dollars, whichever is greater, for checks issued by the federal government, state government, or any agency of the state or federal government, or any county or municipality of this State;
(2) two percent of the face amount of the check or three dollars, whichever is greater, for printed payroll checks. For purposes of this item, 'printed' means type written, electronically generated, or computer generated; and
(3) seven percent of the face amount of the check or five dollars, whichever is greater, for all other checks, including handwritten payroll checks, or for money orders.
(B) A licensee may not advance monies on the security of any check unless the account from which the check being presented is drawn is legitimate, open, and active. A licensee who cashes a check for a fee shall deposit the check not later than five days from the date the check is cashed.
(C) A licensee shall ensure that in every location conducting business under a license issued pursuant to this chapter, there is posted conspicuously and at all times displayed a notice stating the fees charged for cashing checks, drafts, and money orders. A licensee further shall ensure that notice of the fees currently charged at every location is filed with the board.
(D) A licensee shall endorse every check, draft, or money order presented by the licensee for payment in the name of the licensee.
(E) Each check must be documented by a written agreement signed by both the customer and the licensee. In the case of an automated check-cashing machine, a printed receipt of the transaction between the customer and the licensee shall constitute an agreement. The written agreement must contain the name or trade name of the licensee, the transaction date, the amount of the check, and a statement of the total amount of fees charged."
SECTION 3. This act takes effect upon approval by the Governor.
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