Regulatory Alerts2005-10-18
OFI Advisory Opinion No. 4 – FEMA Checks and Check Cashers
The Louisiana Office of Financial Institutions classifies Federal Emergency Management Agency disaster checks as public welfare instruments, requiring licensed check cashers to cap fees at two percent or five dollars, whichever is greater. This advisory opinion applies La. R.S. 6:1009(A)(1) directly to FEMA payments for Hurricane Katrina and Rita victims, mandating compliance from all state-licensed entities. The ruling ensures that check cashers cannot charge higher fees for these federal disaster checks than for other state or local public assistance instruments.
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