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Bulletin C-07-3

 

STATE SEAL

 

To: All Money Transmitters All Industrial Loan and Thrift Companies

Subject: Amendments to the Check Cashing Act

Date: June 28, 2007

The purpose of this Bulletin is to inform all licensed money transmitters and all registered industrial loan and thrift companies of recent amendments to the Check Cashing Act of 1997, Tenn. Code Ann. §§ 45-18-101, et seq. (the "Act").

On May 3, 2007, the Governor signed into law Public Chapter 80 of the Acts of 2007, which will become effective October 1, 2007.

The Check Cashing Act of 1997 currently does not apply to: (1) money transmitters licensed in the State of Tennessee; provided, that money transmitter agents are not exempt from the provisions of the Act; and (2) industrial loan and thrift companies holding a certificate of registration in Tennessee. Effective October 1, 2007, pursuant to Public Chapter 80 of the Acts of 2007, these exemptions from the provisions of the Act will be eliminated from Tenn. Code Ann. § 45-18-103.

Public Chapter 80 of the Acts of 2007 will also amend, effective October 1, 2007, Tenn. Code Ann. § 45-18-104 by adding a new subsection (b). Upon the effective date of Public Chapter 80, Tenn. Code Ann. § 45-18-104(b) will provide that any licensed money transmitter or registered industrial loan and thrift company engaged in the business of cashing payment instruments on October 1, 2007, may continue to engage in the business of cashing payment instruments without a license issued by the Commissioner of the Department of Financial Institutions, until the Commissioner has acted upon the application for a license, if such application is filed by December 31, 2007 (emphasis added).

An application for a license to engage in the business of cashing payment instruments may be obtained from the Department's website, or by calling the Department's Compliance Division at (615) 741-3186. 

The Department's website address is:

http://www.tennessee.gov/tdfi/index.html

 

Any questions regarding this Bulletin may be directed to Stephen Henley, Director of Licensing, at telephone (615) 532-6993, or by e-mail addressed to Steve.Henley@tn.gov.

 

Greg Gonzales
Commissioner