Banking Department

Licensing and Monitoring of Check Cashing Firms

Businesses that provide check cashing services in New York State must be licensed by the Banking Department. We reviewed the licensing process for selected businesses that had been licensed and found that the businesses complied with all licensing requirements at the time their licenses were issued. Once businesses are licensed, their operations are to be reviewed by Department staff every two years. We examined some of these reviews and found that they were performed in accordance with Department requirements. However, we noted that some businesses were not reviewed every two years and problems identified in some reviews were not adequately addressed. We also examined the Department's process for investigating complaints and found that most complaints were investigated in a timely manner. We made a number of recommendations for improving Department oversight of check cashing firms.

For a complete copy of Report 97-S-19 click here.
For a copy of the associated follow-up report click here.
For a copy of the 90-day response click here.