HISTORY OF THE CHECK CASHING INDUSTRY IN NEW YORK STATE

1944
New York State Legislation: Chapter 593 of 1944 - Provided for the licensing and regulation of check cashers (does not impose any limits on the size of checks that may be cashed). Original law stated the allowable fee was one-half of one percent of the face value of the check, or twenty-five cents -- whichever was greater.

1947
New York State Legislation: Chapter 485 of 1947 - Established a $250.00 limit on the size of checks, drafts or money orders that may be cashed by licensed check cashers.

1950
New York State Legislation: Chapter 11 of 1950 - Excluded from the dollar limit any check, draft or money order drawn by the US, states or political subdivisions.

1954
An amendment of the law allowed a one percent fee on checks payable outside the state.

1955
New York State Legislation: Chapter 770 of 1955 - Increased the maximum limit to $350.00.

1957
January 30, 1957, the Sheridan-McAlpin Hotel, Howard Stein had sent a letter asking all Metropolitan-area check cashers to meet. The purpose of the meeting was to discuss and review proposals to the State Banking Department amending the law covering licensed check cashers and have a discussion about starting an association. The association was formed that night.

Howard I. Stein was elected as the first president of Check Cashers Association of New York (CCANY).

One of the first acts under the association was to hire Samuel Gordon, of the law firm Blumberg, Singer, Ross and Gordon, as their general counsel.

A petition was prepared to the State Banking Department asking that the State Banking Law, Article IX-A, be amended so that the limitation of $350.00 be raised to $500.00 on the face amount of any check that a check casher could cash. Further, they requested that there be no dollar limitation on any check drawn by an insurance company or bank. They also petitioned that in addition to the fee of one-half of one percent (minimum twenty-five cents) that they be permitted to impose a five-cent service charge. The association was successful in its first endeavors and the law was changed as requested.

1958
New York State Legislation: Chapter 350 of 1958 - Increased the maximum limit to $500.00; excluded from the dollar limit any check, draft or money order drawn by insurance companies, banks or savings and loan associations.

1962
David Buhler succeeds Howard Stein as CCANY president.

1965
The legislature divided checks into two classes:
Class A: checks under $50.00, continued the five cent handling fee.
Class B: checks $50.00 or more, increased the handling fee to ten cents.

1966
New York State Legislation: Chapter 93 of 1966 - Excluded from the dollar limit any check which has been certified by the bank, trust company or national bank on which it has been drawn. Charles Wapner succeeds David Buhler as CCANY president.

1968
Ike Levy succeeds Charles Wapner as CCANY president.

1969
April - a committee of the association, along with Samuel Gordon, met with Department of Social Services Commissioner Jack R. Goldberg and Assistant Commissioner Henry J. Rosner, regarding procedures for the prompt validation of welfare checks that were returned to CCANY members as alleged forgeries. It is important to note that it was at this meeting that CCANY prevailed in their insistence that food stamps be given to members on consignment rather than pay in advance of the shipment of food stamps to their locations.

1970
A meeting was held in August, at the Clearing House, with representatives from Bankers Trust, Chase Manhattan, Chemical Bank, First National City Bank, Manufacturers Hanover Trust Company and a representative of the Check Cashers Association, to discuss the manpower and facility requirements in connection with the cashing of Public Assistance checks and sale of food stamps. From this meeting, which was the first of a series of joint efforts between the New York Clearing House Association’s five major food stamp banks and CCANY, cam the operating plan for food stamp distribution in New York City.

1972
To secure the City Department of Social Services against any loss, CCANY set up a Food Stamp Trust Fund (Industry Trust Fund). The trustees were the president of the association, Irving Wolf, Norman Ginsberg, Howard Stein, David Mindlin, Stanley Laxer and general counsel Samuel Gordon. David Mindlin succeeds Ike Levy as CCANY president.

1973
February 21 - Representatives of the Industry Trust Fund presented a check to Commissioner Henry J. Rosner in the sum of $11,817.75, payable to the City of New York. The purpose of the check was to reimburse the City for its loss which it had sustained from food stamps sold by an association non-member. In forming the Industry Trust Fund, it had been announced that the obligation for such payment had been assumed by the participants of the fund. The purpose of making the payment, even though there was no legal obligation to do so on the behalf of the Association, the Trust Fund or any members, was to indicate the reliability of members of the Check Cashing Industry and the fact that its members are responsible businessmen cognizant of their obligation to the general public welfare.

1974
New York State Legislation: Chapter 461 of 1974 - Increased the maximum limit to $2,500.00.

1976
Irving J. Wolf succeeds David Mindlin as CCANY president.

1980
Federal law: Bank Deregulation Act of 1980 - removed deposit rate ceilings and led to the explicit pricing for bank deposit services. This act stimulated the national growth of the check cashing industry.

1985
New York State Legislation: Veto 20 of 1985 - Would have increased the maximum limit to $5,000.00.

1986
Bill Siegel elected CCANY president.

1987
The National Check Cashers Association, Inc. was established. (This national association is now known as the Financial Service Centers of America - FiSCA.)

1988
November 2 - Fee changed to a flat fee of 9/10 of 1% and to increase the present minimum from 30 cents to 50 cents.

1992
November 18 - the Banking Department of the State of New York raised the fee that a licensee is permitted to charge or collect for cashing a check, draft or money order from .9% to 1.1% of the amount of the item, and raised the minimum fee from 50 cents to 60 cents. The charge represented an increase of 0.2% in the maximum allowable fee.

1994
Joe Coleman was elected CCANY president. Vice President Al Gore mandated that all benefits be delivered through electronic transfer, instead of paper checks, by 1999.

1996
CCANY and Travelers Express, along with the New York City Board of Education, established a scholarship to give one high school student in each borough. Barry Feinberg was elected CCANY president.

1997
New York Supreme Court nullified the Citicorp contract to deliver electronic benefits.

A 45-day pilot test of its new "Point of Banking" (POB) program in 18 metro area check cashing outlets enabled the association to permit customers with bank accounts to access electronic cash withdrawals. This was the start of the association’s PTM (Personal Teller Machine) initiative.

1998
James Eustace was elected president. He had served as CCANY treasurer since 1994, and as secretary for two years prior.

To ensure that New York’s schoolchildren were properly and uniformly dressed, CCANY joined with Western Union Financial Services, Inc., to help families pay for newly-mandated public school uniforms in the city’s pilot program. A check for $30,000 was given to New York City Board of Education.

1999
The New York State Banking department approved a rate increase allowing New York's check cashers to charge 1.4% of the face value of each check cashed beginning May 5. The new rate replaced the 1.1% rate that was in effect since 1992.

Cashing an employee payroll check in the Tri-state area became easier as the PayNet payroll service network, introduced in metro New York in 1996, expanded into neighboring Connecticut and New Jersey, creating the region’s largest such network with over 550 locations.

2000    
The ground work was laid for a pilot program to enable check cashers to take deposits for members of Bethex Federal Credit Union.

2001
The tragic events of September 11 had a profound effect on our industry.  Numerous locations in lower Manhattan were closed for an extended period.  It was also the advent of new stringent compliance rules – USA Patriots Act.

2002
CCANY celebrated its 45th Anniversary with a dinner dance at the Garden City
Hotel in May.  Matt Bardach was elected President in September.  Also, Senate
Bill S5006-B limiting the check casher exemption for national banks and other regulated entities, was signed by Gov Pataki.

2004
The association changed its name to better reflect their modern financial service centers -- Financial Service Centers of New York (FSCNY).

The New York State Banking department approved a rate increase allowing New York's check cashers to charge 1.5% of the face value of each check cashed. The new rate replaced the 1.4% rate that was in effect since 1999.

2008
The New York Check Cashing industry annually cashes approximately 32 million checks with a face value of nearly $15 billion, and employs almost 4,500 New York residents. New York State has the second lowest check cashing fee in the nation at 1.75%. FSCNY represents 530 licensed check cashing centers.