Letter from New York community, legal services, and neighborhood organizations, strongly in support of the New York State Department of Financial Services’ proposed amendment to its check cashing regulation (3 NYCRR 400.11). This regulation would cap fees for cashing checks at check-cashing businesses throughout the state and provide stronger oversight over requests for any future increases. It will also end the practice of providing automatic increases in fees based on the Consumer Price Index.
The purpose of the regulation is to protect consumers, especially low and moderate-income New Yorkers, by more carefully considering the impacts of fee increases, which are currently tethered to increases in the Consumer Price Index.