Connecticut House Bill HB05401

Connecticut 2018 Regular Session

• Introduced: 3/1/18
• Refer: 3/1/18

Caption

An Act Concerning Fees For Cashing Payroll Drafts.

Impact

The implementation of HB 5401 has the potential to significantly impact regulations related to financial services in the state. It provides clarity in determining the maximum fees that can be charged, thereby promoting consumer protection. By outlining specific considerations that the commissioner must evaluate when determining fee changes—such as consumer effects and operational costs—the bill balances consumer interests with the operational needs of businesses in the finance sector.

Summary

House Bill 5401 is legislation focused on regulation concerning fees charged by check cashing licensees for cashing payroll drafts. The bill mandates that the commissioner, by regulation, shall establish maximum allowable fees for cashing checks, drafts, payroll drafts, or money orders drawn on depository institutions. This aims to protect consumers from excessive charges by ensuring that no fees exceed the stipulated maximum or one dollar, whichever is greater, thus allowing for fair practices in the check-cashing business.

Contention

While the bill appears to favor consumer rights by regulating fees within the check cashing industry, there may be some contention regarding its broader implications. Critics may argue that excessive regulation could inhibit business flexibility or that the established fees may not adequately reflect the market dynamics of check cashing services. Thus, it will be crucial for the commissioner to maintain a transparent and equitable fee structure that accommodates both consumer protection and the operational realities of businesses in this field.