Allentown City has released a statement to remind everyone that, if you receive a paper federal stimulus check, the law limits the maximum fee to cash that check to 1.5 percent.
“It is important consumers understand check cashing fees, so they keep as much of their money as possible,” said Pa.'s Acting Banking Secretary Richard Vague. “We will be ensuring that check casher licensees are complying with statutory provisions related to fees on government checks during ongoing examinations.”
Economic impact payments are specifically defined as a “Government Check” in the law that regulates check cashers in Pennsylvania. For any consumer that uses a licensed check casher or a registered retail check casher (e.g. grocery store) to cash this check, a maximum fee of 1.5 percent of the value of the check may be assessed. For example, on a $1,200 check, the maximum allowed fee is $18. A consumer would receive cash in the amount of $1,182.
To be sure that the establishment is properly licensed or registered consumers can call 1-800-PA-BANKS.
If an establishment cashes your Government Check and charges more than 1.5 percent, please contact Banking immediately by calling 1-800-PA-BANKS or visiting the website at dobs.pa.gov. It is important that you retain records of the transaction including a receipt.
“Consumers should remain vigilant about various coronavirus scams,” said Vague. “No government official will call you to confirm bank account information or your Social Security number. Never give out personal information if you did not initiate the phone call.”
For more detailed information related to financial scams and tips for protecting yourself, Banking has developed a financial scams guide.
1 comment:
Great that the banking secretary has time during this crisis to write a manual on check cashing fees. Don't let anyone get a slice of this tax free handout. Thank you Master, for enlightening the masses.
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