Think Files Civil Suit Against California: Think Computer Corporation v. Venchiarutti et al

Information for California Residents

Summary

If you live in the State of California and you have deposits with FaceCash, your money will be automatically refunded by June 30, 2011. This applies to both individuals and businesses.

We are incredibly sorry for the inconvenience and hope that we can remedy the situation soon.

Why are you refunding deposits?

In September, 2010, the California legislature passed the Money Transmission Act, which combined three laws into one and introduced new requirements for money transmission. The law was sponsored by the Money Services Roundtable, a political special interest group counting Western Union, American Express, Travelex and MoneyGram among its members. One of the biggest changes the law made was that it imposed new requirements for companies conducting domestic money transmission (moving money within the United States), including a $500,000 tangible net worth requirement, and a $750,000 aggregate surety bond requirement.

Even though Think Computer Corporation, the company that runs FaceCash, is capable of meeting both of these requirements, the unfortunate reality is that the California Department of Financial Institutions (DFI) requires licensees to have far more than the dollar figures specified by the statute. The DFI has been unwilling to provide a single number to us explaining how much money is actually required to obtain a license.

Why don't you apply anyway and hope for the best?

If the California DFI were to deny our application for a license, we would be at risk of being denied licenses in every other state in which we apply. (Each state's license application asks whether the applicant has been denied any other kind of license for any reason.)

Why don't you just move?

The law is not based on the location of a money transmitter, but rather on the location of the parties doing business with a money transmitter. In other words, the law affects companies nationwide wishing to do business with individuals and businesses in California.

Can I use FaceCash outside of California?

Yes, in some states. Think Computer Corporation has licenses in the states listed on our Legal page. FaceCash can also be used where domestic money transmission is not regulated. States that do not regulate domestic money transmission include Massachusetts, New York (until September 30, 2011), South Carolina, Montana, Wisconsin, Indiana (which only regulates companies with offices in Indiana), and New Mexico.

Can I still use FaceCash Register to run my business?

Yes. FaceCash Register will still work with credit cards, debit cards and cash as before. Businesses in California will not be able to accept mobile payments using FaceCash, however.

Who can I contact if I have questions?

Use our Contact Us page to get in touch and we will try to answer your questions as fast as we can. You can also call or e-mail your Assemblyman or State Senator in California, or your Representative or Senator in Congress, to explain how the law has affected you.

Has anything changed since June, 2011?

We are now fighting the State of California through a lawsuit challenging the constitutionality of money transmitter laws. See Think Computer Corporation v. Brown.

Last updated November 14, 2011, 5:00 P.M. Pacific Time

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