Author: mtraAdmin

On February 4, 2005, Texas Banking Commissioner Randall S. James entered into an Agreed Final Order (Order) with IPP of America, Inc. (IPP), 330 Passaic Avenue, Suite 1, Fairfield, New Jersey. The Order directs IPP to cease processing bill payments to creditors on behalf of consumers, a practice requiring a money transmission license in Texas. IPP is not currently licensed in Texas to engage in this type of business activity as required by Chapter 152 of the Texas Finance Code. IPP is based in New Jersey and has approximately 53 bill payment center locations in Texas.

IPP voluntarily discontinued accepting bill payments as of January 27, 2005, and has filed a license application with the Department. The Order requires that IPP pay a $15,000 administrative penalty for engaging in money transmissions in Texas without a proper license. Inquiries regarding Texas bill payments and money transmission transactions pertaining to IPP should be directed to:

Texas Department of Banking
Special Audits Division
2601 N. Lamar Blvd.
Austin, Texas 78705

Toll free phone (877) 276-5554
At the prompt menu, press “3” for Inquiries/Complaints,
then press “5” for the Currency Exchange/Transmission.

The Kansas Office of the State Bank Commissioner is supporting a bill to modernize the  Kansas Money Transmitter Act. The proposed amendments will clearly define electronic transmission and stored value cards; provide authority to the Commissioner to revoke licenses; and tie the surety bond to the size of the business rather than to the number of locations. If the bill is passed, it would take effect on July 1, 2005. For further information, you may contact Sonya Allen, General Counsel’s Office, Kansas Office of the State Bank Commissioner at  785-296-2266.

The MTRA Board of Directors is happy to announce that its 2005 annual meeting and conference will be held at the Francis Marion in the historic district of Charleston, South Carolina. The meeting is scheduled for November 7- 9. Originally planned for Seattle Washington, the conference was moved to historic Charleston after encountering insurmountable difficulties with hotel accommodations. The Board is in the process of organizing the program and is encouraging interested parties to contact one of the board members with their suggestions.

MTRA welcomes in its membership the great states of Connecticut and Missouri. This brings the total state membership to thirty-five.

Indiana recently passed amendments to its money transmitter statutes providing for the release of otherwise deemed confidential information to state or federal officials. They are:(a) financial institution supervisory agencies; (b) law enforcement agencies; and (c) prosecutorial agencies or offices. The requirement to give the licensee prior notice before releasing confidential information coupled with an explanation as why the release of such information is necessary for the protection of the public and in the interests of justice was also repealed.

The money transmitter statute was also amended to provide for the automatic administrative corporate dissolution of a money transmitter if it has failed to renew its license or pay any fee owed to the Department of Financial Institutions for a period of two consecutive years.

Finally, Indiana clarified the fact that agents of exempt entities such as banks, are also exempt from licensing requirements.