The Division of Banks has ordered six check cashers, including three in Central Massachusetts, to stop charging customers fees for depositing Social Security and other government benefit checks.
State law requires that banks and check cashers process Social Security checks for free.
In the cases cited by the Division of Banks, check cashers had partnered with out-of-state banks and charged an estimated 2,600 customers in the state a fee of between $4 and $4.95 to directly deposit government checks.
The check cashers then charged between 2 percent and 2.8 percent interest for customers to access the accounts.
The state said it has ordered the six institutions to stop their partnerships with the out-of-state banks.
The local check cashers involved in the crackdown include Cassie H. Farmer Family Financial Center in Framingham, Northeast Check Cashing (or The Money Stop) in Worcester and Parras Inc. (or Ace Cash Express) in Worcester.
