STATE OF MICHIGAN DEPARTMENT OF COMMERCE BANKING INSTITUTIONS BUREAU

STATE OF MICHIGAN DEPARTMENT OF COMMERCE BANKING INSTITUTIONS BUREAU
IN RE: REQUEST BY OAK BROOK/CASH NOW PARTNERS d/b/a MONEY CONNECTION FOR A DECLARATORY RULING REGARDING THE APPLICABILITY OF THIS REGULATORY LOAN ACT OF 1963, AS AMENDED, TO CERTAIN TRANSACTIONS.
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We. Facts
Oak Brook/Cash Now Partners d/b/a Cash Connection (“Cash Connection”) is a small business that runs into the greater metropolitan Detroit area. Its activity that is primary is checks for a cost, as well as other ancillary solutions include issuance of income sales, giving and getting Western Union cash transfers, as well as other relevant solutions. money Connection has required a ruling for solution that is a variation on its check cashing company.
In its normal check cashing company Cash Connection will cash payroll, federal federal federal government, and private checks for a cost of 10% associated with the number of the check. Money Connection has inquired about an expansion of its check that is personal cashing to a site referred to as “Payday Advance.” The pay day loan transaction, as described by money Connection, varies from the check that is normal deal for the reason that there is an dental contract to keep a present-dated look for a time period of as much as week or two. The check is held since the cabinet has funds that are insufficient his / her account in the time the check is exchanged for money, but guarantees to possess funds inside the or her account on the agreed upon date, the client’s next payday, that the check should be presented for re payment. […]