Senate Passes Bill Protecting Customers from Outrageous Check Cashing Fees

House Bill 2202 will now move to the Governor’s desk for his signature.

Photo: Tim King

(SALEM, Ore. ) - The Oregon Senate Friday passed House Bill 2202, legislation that sets limits on fees for the check-cashing industry in Oregon.

The bill will protect people who use the services from unreasonable rates, require business to obtain a license to operate and ensure that fees are clearly visible for customers.

“Hard-working Oregonians deserve protection from unreasonable fees,” said Senator Floyd Prozanski (D-Eugene). “They also deserve to know up front what terms they are agreeing to if they use check cashing services.”

House Bill 2202 imposes limits on the amount of fees a business could charge for check cashing services and also requires the Department of Consumer and Business Services to license and regulate check-cashing businesses.

“This is clearly a very important consumer protection issue for working families,” said Senate Majority Leader Kate Brown (D-Portland). “I want to thank the Governor and the House leadership for helping to make this important legislation happen.”

An estimated 10 percent of households nationwide do not use traditional financial services and rely on check-cashing businesses to cash paychecks, government assistance checks and tax refunds. Currently, 32 states regulate check-cashing businesses.

House Bill 2202 will now move to the Governor’s desk for his signature.