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Fri, 28 Mar 2025 20:20:01 -0700
marlon from private IP, post #13249599
/all
why do we have Escheatment?
https://www.mlive.com/news/2025/03/national-bank-with-69m-customers-says-it-can-close-your-account-as-part-of-obscure-law.html
Escheatment is the process by which a financial institution must report and remit any abandoned or unclaimed property for safekeeping, Bank of America says.
Depending on the state, certain laws are in place that require banks to turn over the contents of an account if it has not been accessed for a significant
period of time.
In Michigan, property is considered abandoned or unclaimed when there no activity within the specified dormancy period (3 years for most property types) or the
business holding the property is unable to locate the owner.
Escheatment doesn’t just apply to the money in your account. The following property types are subject to escheatment:
Checking and savings account balances.
CD and IRA balances.
Safe deposit box contents.
Cashier’s checks and other official items that are not negotiated.
Securities (such as stocks, bonds and mutual funds).
Fri, 28 Mar 2025 20:20:50 -0700
marlon from private IP
Reply #19743240
once i almost lost some money due to this.
Fri, 28 Mar 2025 21:48:57 -0700
phosita from private IP
Reply #19734310
I suspect it's similar to prepaid gift cards that expire after a number of years: just a matter of accounting
expedience to get the liability off the books.
Also someone probably takes a cut and gets rich. So, yeah. Money.
Fri, 28 Mar 2025 22:56:24 -0700
2tierreality from private IP
Reply #10138803
Back in the jolly old England, the King would just come around and steal from....er, I mean tax everyone every so many
years, and take what he wanted. Escheatment to the state is a pretty tame policy, by comparison.
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