LOS ANGELES : Council Backs State Bill on Money-Order Industry
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The Los Angeles City Council on Wednesday voted 13 to 0 to support state legislation to place greater controls on the money-order industry.
The Times recently reported that the failure of one money-order firm and its seizure by state regulators caused considerable hardship among poor Latino immigrants and blacks who use money orders to pay many of their bills.
The council agreed to back a bill by state Assemblywoman Marguerite Archie-Hudson (D-Los Angeles). Councilman Mark Ridley-Thomas, who made the motion, told his colleagues that the bill would require money order firms to undergo background checks by regulators, post a bond and disclose to customers that their money orders were not federally insured.
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