Worse yet, the time and effort spent on escheatment is work that creates no true value. Yet with states facing increasing economic pressures, the focus on escheatment compliance is likely to grow in the coming years. And if the property is not escheated, significant fines and penalties can be levied by the state that date back several years.Īdd a patchwork of laws that vary from state to state and rules that even vary by property type, and the costs continue to mount. It typically costs just as much to process an unclaimed payment of $5 as it does for $500 or $5,000. In essence, if a business makes payments that go uncashed or holds money in accounts that go untouched, it’s responsible for escheatment.Īnd the cost of escheatment can grow quickly because it’s tied to the number of possible properties rather than the value of them. State governments have the right to take ownership of unclaimed funds based on specific laws and practices built around this escheatment process. Recent advances have allowed for the automation of some parts of the escheatment process, with more on the way.Īutomation can decrease the time, energy and money spent processing escheatment, and through increased visibility and digitizing the claims process, may even be able to speed up the process of identifying and returning some of that money to its rightful owners before it becomes escheatable. Most uncashed checks are for small amounts – small enough for the rightful owner to lose sight of them – but large enough to become a big headache for the companies that need to account for them. With 55 jurisdictions having laws that require unclaimed property reporting, there is no way to avoid the costs of tracking and processing escheatable items, but there are ways to contain them. It is estimated that only 10-20% of companies are in full compliance with the various escheatment requirements due to all the complex state regulations surrounding them. There is tremendous opportunity to improve how unclaimed checks are managed and potentially escheated to the applicable state. Escheatment is a compliance headache for most organizations and checks are front and center. Automate the process to improve your AP department.įor years now, we’ve been hearing that checks are going away. However, Aite-Novarica Group reports that 76% of North American businesses used checks to make payments in the past year, suggesting that checks are still among the most widely used tools for business payments.Ĭhecks don’t age well and are more likely to go unclaimed than electronic payments, resulting in escheatment, the process of reporting and remitting unclaimed property to the state. Find a financial advisor or wealth specialistĭiffering state laws for unclaimed property can make the escheatment process time-consuming and costly.She recently joined the Board of Directors and has been a METRO member since 1986. He has served on the board since 2020 and has been a METRO member since 1989.ĭiane is currently the Executive Director for the Cary Area Public Library District. John Feit is retired from the Village of Barrington Fire Department where he served as Deputy Chief. Larry has been a METRO member since 1994. Larry DeLegge is the CEO for DeLegge Financial Services, a leading authority in Estate Planning, Retirement Savings, College Funding and Investment Protection. Sue Gwinnup is retired from her position as Superintendent of Recreation for the Arlington Heights Park District and has been a Board member since 1991 and a credit union member since 1983.ĭean Stewart is retired from the Arlington Heights Fire Department. David previously served as a METRO Board Member from 1997-2011, and then a Supervisory Committee Member in 2014. He also served as Fire Chief for the Roselle Fire Department from 2014 to 2015. She has been a board member since 1991.ĭavid Schultz retired in 2011 as Division Commander of EMS for the Arlington Heights Fire Department. METRO FEDERAL CREDIT UNION BOARD OF DIRECTORSĭonna Wilson retired in 2018 as the Director of Finance and Personnel for the Arlington Heights Park District. Our board establishes our loan and savings policies while directing the affairs of the credit union. Our Board of Directors is a member-elected, volunteer board that directs the affairs of METRO Federal Credit Union.
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