Getting a paper stimulus check? Banking department says beware of rip-offs
The state Department of Banking and Securities wants Pennsylvanians receiving paper stimulus checks instead of direct deposit to be aware of what constitutes an inflated check-cashing fee so recipients can keep as much of the money as possible.
Pennsylvania law regulates both licensed check cashers and registered retail check cashers, such as grocery stores.
To cash a government check, a maximum fee of 1.5% of the value of the check may be assessed. For example, on a $1,200 check, the maximum allowed fee is $18. A consumer would receive cash in the amount of $1,182.
The payments are part of the federal Coronavirus Aid, Relief, and Economic Security Act.
The state banking department is also is reminding licensees of limitations on fees for cashing government checks.
To find out if an establishment is properly licensed or registered, consumers can search on the NMLS Consumer Access website or call 1-800-PA-BANKS.
If an establishment cashes a government check but charges a fee of more than 1.5%, consumers can immediately call 1-800-PA-BANKS or visit the website at dobs.pa.gov.
It is important that consumers retain records of the transaction including a receipt.
The banking department also wants to ward off scammers, too. No government official will call to confirm bank account information or Social Security numbers, the banking department reminds residents, adding to never give out personal information if not initiating a phone call.