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#1660728 - 02/03/12 09:51 PM Unclaimed property
rebpeb Offline
Junior Member
Joined: May 2011
Posts: 44
We have a customer that w/d $8000 form their sav acct. On the same or next day, brought back the check, which we voided, and we issued two $4,000 checks payable to an auto dealer. One check cleared and the other is still outstanding since August 2007. We called the auto dealer and they said the customer is square with them, they verifed they received one $4,000 payment. So, the question is do we put a stop payment on that check and deposit the funds back to his account, which he has never mentioned the other $4,000 check. We aren't sure which party the funds belong to, the auto dealer or the customer. The customer has never said anything about the other $4,000 check, seems like he would know if the car dealer needed either $4,000 or $8,000. The question is do we put a stop pay on that check and deposit the money back into his account or turn it over to unclaimed property?

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#1660766 - 02/03/12 11:20 PM Re: Unclaimed property rebpeb
rlcarey Offline
10K Club
Joined: Jul 2001
Posts: 77,275
Galveston, TX
Why don't you just call him first?
The opinions expressed here should not be construed to be those of my employer:

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#1660768 - 02/03/12 11:10 PM Re: Unclaimed property rebpeb
William J. Ludwig Offline
100 Club
William J. Ludwig
Joined: Oct 2000
Posts: 114
New York, New York USA
No stop payment. Escheat the negotiable instrument to your State in accordance with their reporting schedule. Pay attention to the timing each year, because a number of States have lowered their escheatment timetable. Here in New York just about everything went down from 5 years to 3 years. (States are hungry for money!) and if you are late delivering abandoned property, New York State can charge you late filing interest. Interest is 10% per year from the date payment or delivery was due to the date you make payment. (Ouch!)
Opinions expressed are mine (since I'm retired).

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#1660798 - 02/04/12 01:15 PM Re: Unclaimed property rebpeb
Elwood P. Dowd Offline
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Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
Call the customer... When you know what the deal is you can review your state's version of the UCC and see how to go about reissuing the check.

I'm willing to offer a guarantee that unilaterally stopping payment on what I assume is the equivalent of a cashiers check is not on your list of options.
In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.

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#1660835 - 02/06/12 12:50 PM Re: Unclaimed property rebpeb
edAudit Offline
Power Poster
Joined: Jul 2008
Posts: 4,714
You are here
Agreed with escheat postings; however, did the bank verify that the check has not cleared in error as it seems strange with two 4,000.00 checks and no customer inquiry? Was the "missing' 4,000. to be placed back into the customer accound and was it?
Opinions can be considered as coming from anywhere but my employer.


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#1678712 - 03/16/12 04:37 PM Re: Unclaimed property rebpeb
Blessed Offline
Diamond Poster
Joined: Oct 2007
Posts: 2,389
If the cashiers check was purchased by a customer who still has accounts with you there is no reason to escheat! The customer should be contacted and the issue discussed. Escheatment is for funds which are unclaimed and the financial institution is unable to verify the customer knows of the funds.
Ecclesiastes 10:2 (NIV)

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#1678890 - 03/16/12 07:53 PM Re: Unclaimed property rebpeb
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,336
Cape Cod
Just don't consider those funds verified if your customer (the remitter) delivered the check to the intended payee and it hasn't been paid yet. In that case, I think most states would consider that the funds are subject to abandoned property rules because the party at interest is the payee, not your purchaser.
John S. Burnett
Fighting for Compliance since 1976
Bankers' Threads User #8

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