§ 23-52-106 - Other terms of doing the check-cashing business.
23-52-106. Other terms of doing the check-cashing business.
(a) A check-casher may not purchase a check for the purpose of deferred presentment option without receiving from the customer a written certification that the account upon which the check is drawn is legitimate and open. The certification may be contained in the body of the deferred presentment option agreement required by this chapter.
(b) Before a check-casher shall present for payment or deposit a check purchased by the check-casher, the check shall be endorsed with the actual name under which the check-casher is doing business.
(c) Any agreement for a deferred presentment option of a check shall be in writing and signed by the maker of the check. Such written agreement shall contain a written explanation in clear, understandable language of the fees to be charged by the check-casher and the date on which the check will be deposited or presented by the check-casher. Without limitation, such explanation shall contain a statement of the total amount of any fees charged for the deferred presentment option expressed both in United States currency and as an annual percentage rate. Enactment of this subsection shall not create any inference that a particular method of disclosure was required prior to April 7, 1999.
(d) The maker of any check purchased by a check-casher and accepted for deferred presentment option shall have the right to repurchase that check from the check-casher before the agreed date of deposit upon payment to the check-casher of the face amount of that check. If a check-casher accepts a partial payment, that check may not be presented for deposit nor may the check-casher charge any additional fee. A check-casher shall not defer presentment of any check for less than six (6) calendar days nor more than thirty-one (31) calendar days after the date the check is sold to the check-casher.
(e) A check-casher shall issue a copy of the written agreement to each person for whom a check-casher grants a repurchase option and defers deposit of a check.
(f) A check-casher shall comply with all provisions of state and federal law regarding cash transactions and cash transaction reporting.
(g) If a check is returned to the check-casher from a payer bank or other financial institution due to insufficient funds, closed account, or a stop-payment order, the check-casher shall have the right to all civil remedies allowed by law to collect the check and shall be entitled to recover any returned check fee authorized by applicable Arkansas law, court costs, and reasonable attorney's fee paid to an attorney who is not a salaried employee of the check-casher.
(h) If a check is returned to a check-casher from a payer financial institution because there are insufficient funds in or on deposit with the financial institution to pay the check, the check-casher or any other person on behalf of the check-casher shall not institute or initiate any criminal prosecution against the customer who sold such check to the check-casher, unless the check-casher would otherwise be entitled to institute or initiate a criminal prosecution against such customer under applicable Arkansas criminal law and such check is returned to the check-casher because:
(1) The account on which such check was drawn was closed by the maker of the check, either before or during the term of the deferred presentment option agreement; and
(2) Payment on the check was stopped by the maker of the check.
(i) No check-casher may alter or delete the date on any check accepted by the check-casher.
(j) No check-casher may accept an undated check or a check dated on a date other than the date on which the check-casher purchases the check.
(k) Consistent with the nature of a deferred presentment option, no check-casher shall require a customer to provide security for the deferred presentment transaction or require the customer to provide a guaranty from another person.
(l) Each check-casher shall pay all proceeds in cash for any check purchased.
(m) No check-casher shall have more than one (1) deferred presentment check outstanding at any time from any one (1) customer per permitted location. A deferred presentment check purchased from any one (1) customer and outstanding at any one (1) time shall not exceed four hundred dollars ($400).
(n) A check-casher shall not renew or otherwise consolidate a deferred presentment option transaction with the proceeds of another deferred presentment option transaction made by the same customer.