STATE OF MICHIGAN DEPARTMENT OF COMMERCE BANKING INSTITUTIONS BUREAU

STATE OF MICHIGAN DEPARTMENT OF COMMERCE BANKING INSTITUTIONS BUREAU

IN RE: REQUEST BY OAK BROOK/CASH NOW PARTNERS d/b/a MONEY CONNECTION FOR A DECLARATORY RULING IN THE APPLICABILITY OF THIS REGULATORY LOAN ACT OF 1963, AS AMENDED, TO CERTAIN TRANSACTIONS.

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We. Facts

Oak Brook/Cash Now Partners d/b/a Cash Connection (“Cash Connection”) is a small business that runs into the greater metropolitan Detroit area. Its main activity is cashing checks for a cost, along with other ancillary solutions include issuance of income instructions, giving and getting Western Union cash transfers, as well as other associated solutions. money Connection has required a ruling for an ongoing solution this is certainly a variation on its check cashing company.

With its normal check cashing company money Connection will cash payroll, federal federal government, and personal checks for the cost of 10% of this number of the check. Money Connection has inquired about an expansion of its check that is personal cashing to something referred to as “Payday Advance.” The wage advance transaction, as described by money Connection, varies from the check that is normal deal for the reason that there is a dental contract to put up a present-dated look for a time period of as much as fourteen days. The check is held due to the fact cabinet has funds that are insufficient his / her account regarding the time the check is exchanged for money, but guarantees to possess funds inside the or her account in the agreed upon date, the consumer’s next payday, that the check are going to be presented for re re re payment. Continue reading