A Payday Lender company, who does not bank with us, will present "on-us checks" given to them by our customers to convert them to a cashiers check. They mentioned yesterday to our teller that they saw a notice at another bank stating Payday Lenders would have to present checks electronically starting November 1.

I have tried finding information about this without any success. Has anyone else heard of this? If yes, where can I find information on it?

That doesn't sound like there's a new law or regulation. It sounds like the bank in question got wise and won't exchange customer checks payable to the lender for cashier's checks after October 31. Instead, the payday lender will have to deposit the checks and let them clear (which normally is done electronically these days).

Your bank is similarly under no obligation to exchange on-us checks payable to the payday lender for cashier's check on presentment. You risk the possibility that the persons indorsing and negotiating the checks are not acting under authority from the payday lender, which could result down the road in forged indorsement claims, etc.

Just wanted to make certain you saw that. It's a lousy banking practice and you can stop it any time you want.

Thank you...I didn't realize this was a practice of ours until questioned about a new regulation.