Seeking to help the often low-wage workers who rely on check cashing businesses to collect their pay, the Senate last Thursday passed a bill to limit how much check-cashers can take as their cut. The bill (S 2323) limits fees to 1.5 percent for state or federal benefit checks, 1.5 percent for all other government-issued checks, 3 percent for payroll checks of $100 or less, 2.25 percent for payroll checks greater than $100, the greater of 5 percent or $5 for personal checks, and 3 percent for drafts or money orders. It passed the Senate on a voice vote last Thursday afternoon.

"This bill will allow people to keep more of their hard-earned income which will improve their ability to build assets, create wealth and promote overall stability in the state's economy," Sen. Linda Forry, the bill's original sponsor, said in a statement. "This is an important step in helping to level the playing field for low and middle income citizens of the Commonwealth."

Massachusetts does not have limits on the fees that can be charged for check cashing, but 26 states across the country do, according to Forry's office. About 5 percent of all Massachusetts households lack a checking or savings account, most often families that earn low wages and are unable to maintain a minimum balance or pay monthly banking fees, Forry's office said.

"This legislation brings Massachusetts in line with majority of the other states by protecting our residents from harmful predatory practices of charging exorbitant charges just for people to gain access to their hard earned income," Senate President Stanley Rosenberg said in a statement. The bill now moves to the House for consideration.