New Jersey Department
|For Immediate Release: April 28, 2004||
For Further Information:: Bill Heine - (609) 292-5064
Commissioner warns retailers about bill-paying service
Cashpoint Network Services to lose its New Jersey license
TRENTON - Banking and Insurance Commissioner Holly C. Bakke today warned all retailers who provide bill-paying services for their customers that New Jersey regulators are moving to suspend the license of Cashpoint Network Services Inc.
"Our primary objective is to protect consumers," Commissioner Bakke said. "Both retailers and consumers alike should be aware that this company may no longer be able to meet all of its obligations."
Cashpoint, headquartered in New York, has been licensed in New Jersey as a money transmitter since March 2000. The company operates 112 outlets across the state in retail stores to collect primarily utility payments from consumers, many of whom do not have checking accounts.
Commissioner Bakke also is urging those affected retailers to consider contacting their banks to suspend Cashpoint's authorization to sweep funds from retailers' accounts. Utility payment funds on hand may be transmitted to the utility using another money transmitter or refunded to the customer, until Cashpoint resolves its issues.
Under New Jersey law, the Department must first issue an Order seeking to suspend Cashpoint's license. The company then has 10 days from receipt of that order to request a hearing. The license remains in effect until the hearing or after the 10-day time period expires. The Order, which also applies to Cashpoint's key shareholders, Samuel and Bernie Brevdeh, was signed late Monday.
"It is important for all consumers to understand that the suspension Order applies only to Cashpoint," Banking Director H. Robert Tillman said. "No other check cashers, money transmitters or banks are included. Many other check cashers and money transmitters are licensed in New Jersey."
Any consumer who has made a payment through Cashpoint should keep the receipt for the payment. Any consumer who is concerned about the payment should first contact the utility company to confirm credit to the consumer's account. Anyone who is unable to receive credit with the receipt of payment may file a claim with the Department's Division of Banking Enforcement Bureau at (609) 292-7272, ext. 50240, or the Consumer Services Bureau at (609) 292-7272. Consumers should be prepared to submit name, address and telephone number; the location of the Cashpoint agent used; the name of the payee (utility being paid), and a copy of the receipt of payment.
The decision to suspend Cashpoint's New Jersey license is based on suspensions in New York and Pennsylvania and reports that Cashpoint has filed involuntary Chapter 7 bankruptcy in New York. Therefore, Cashpoint no longer has the net worth to continue holding a New Jersey license.
Here is a copy of the Order.