Tuesday, September 9, 2008

The Tribe In The News: CT Attorney General Looking Into Casino Check Cashing Problem

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This installment of The Tribe In The Media series is a Hartford Courant article on a check-cashing problem at Mohegan Sun and Foxwoods which alleges that over 12,000 personal checks that were cashed at the casinos ended up being deducted twice from patrons' checking accounts.

Check-Cashing Firm Pressed
By Eric Gershon
The Hartford Courant
September 9, 2008

Attorney General Richard Blumenthal's office is investigating the role of a Las Vegas company in an Aug. 30 check-cashing problem at Connecticut's two tribal casinos that has also affected consumers nationwide.

Visitors who cashed personal checks at Mohegan Sun and Foxwoods Resort Casino on Aug. 30 had the amount of the checks deducted from their bank accounts twice.

Global Cash Access, the Las Vegas company that provides check-cashing services for the casinos, blamed a problem with one of its own contractors and said at least 12,000 checks worth about $4 million were involved.

Global has refused to name the contractor, but Blumenthal said he will demand the name in a letter to be sent to the company today.

"We want to know very definitely all of the third-party processors involved in these errors," Blumenthal said Monday. "And we're taking right now at face value their claim that they were inadvertent and isolated errors, rather than part of some purposeful scheme."

Global said in a statement that it would "cooperate completely" with Blumenthal's inquiry.

"We believe that the attorney general will find that this was an isolated error at a third party processor that is being addressed responsibly and completely," the company said, noting that "nearly all" of the checks cashed twice had been "corrected."

The state banking department said it is satisfied with Global's efforts to address the problem.