Unclaimed Funds: True or False?

Unclaimed money- that forgotten utility deposit, an inactive bank account or an uncashed paycheck- sits in treasury offices all across the United States and Canada. The money comes from insurance refunds, customer overpayments, unused traveler's checks, and other sources. The list of sources for the unclaimed funds is large; so is the list of people to whom this money is owed: over 116 million.

Where Did It Come From?

State regulations protect the consumer by incorporating statutes that require companies to turn any unclaimed funds over to the state treasury department or other financial offices. The treasurer is obligated to find the missing person and refund the unclaimed money.

How Do They Find Me?

Every year, public awareness programs set up booths or hold meetings to locate people, or their heirs, to return the money. Many times, national news coverage is given to the program and hundreds of thousands of dollars are returned to the rightful owners.

Unclaimed Money Scams

You may get a letter stating you have unclaimed funds and an offer to get your money, for a small fee, from various companies. Most of these companies are legitimate and charge a percentage of the claim. However, don't be fooled into thinking you must pay to get your money. The government set up a website search which lets you find the unclaimed funds you are owed. The service is free and you can do it from home.

Getting Your Money

I found out about unclaimed money from a television news broadcast about four years ago. Being the curious type, I logged onto the Missing Money website and did a search for myself, my fiance and a few other family members. I was shocked to see I had a $50 utility deposit from Florida Power and Light sitting in the treasurer's department in Florida. I forgot about the refund when I moved back to Ohio. I also found an insurance claim settlement listed for my fiance. By the time I was done searching, I found almost $900 that was unclaimed by me and my family.

I downloaded the necessary claim forms, filled them out and sent in the required documentation. The other people filled out their forms. It took six weeks, but I received a $50 check in the mail. My fiance received his money shortly after I did, and so did the other family members.

The only problem with claiming the money being held is the documentation requirements. You must be able to prove you are that person or the legal heir. This may mean supplying marriage or divorce documents, an old lease or utility bill, or some other form of verification. The important thing to remember is if the state unclaimed funds office is holding the money for you, it is not going anywhere, so you have time to file the claim and get your money.

Sources: National Association of Unclaimed Property Administrators: What is Unclaimed Property; http://www.unclaimed.org/what/; March 24, 2011