Is California Ceasing your idle Bank Account?? (wage, government, claim)
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Okay, 15 years may have been too long. But 3? Way too short. Students go overseas to school, people go off to work and war. And what if somebody gets really sick and their family doesn't know about the bank account. This sucks.
Okay, 15 years may have been too long. But 3? Way too short. Students go overseas to school, people go off to work and war. And what if somebody gets really sick and their family doesn't know about the bank account. This sucks.
If the family didn't find it in 3 years, they aren't going to find it.
I'd bet the banking industry wanted this change. Finding owners of inactive accounts is onerous, and no one wants to service and monitor balances of inactive accounts.
The 80% cut is not a representative statement, as the reality is the prior standard, 15 years, was unusually long.
There are many sites online where one can look for "lost/unclaimed money" for self, relatives and even friends and notify them. It's fast and it's easy. One just needs to be aware and check up on it.
Why is any government entitled to anyones unclaimed property?
Because the financial institutions don't want to mess with accounts that just sit there and do nothing. they want ACTIVE customers.
So, they turn the accounts over to the government to hold, and let THEM find the account owners.
In other words, it is "HERE, you take this and deal with it, WE don't want to mess with it any longer!"
A lot of the money isnt actually from bank accounts but its money that utilities, phone company, cable company, etc tried to refund to the customer after service was terminated. I had a small amount from a cable company that went to the state when the post office failed to forward the mail.
Because the financial institutions don't want to mess with accounts that just sit there and do nothing. they want ACTIVE customers.
So, they turn the accounts over to the government to hold, and let THEM find the account owners.
In other words, it is "HERE, you take this and deal with it, WE don't want to mess with it any longer!"
If they charge for the maintenance of an account, there is no reason to let the guv loot the dormant account
All states have laws governing unclaimed property, e.g., dormant bank accounts, lapsed insurance benefits, unredeemed claims, unclaimed inheritance, etc. These laws provide that after a specified length of time unclaimed property escheat to the state. In the case of bank accounts, it is contract claim. When you open a bank account and make a deposit, you surrender legal title to the money deposited. The money deposited becomes an asset of the bank, and the depositor’s account is held as a liability of the bank. The depositor has an unsecured contract claim against the bank for the funds deposited. Under the law, the bank or other holder of a dormant account is required to turn over the funds to the state as unclaimed property.
FWIW, Bobby Jindal in Louisiana proposed, and it was passed a law also shortening the time until the state could seize inactive accounts, all the money, however was dedicated to transportation improvements.
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