FREQUENTLY ASKED QUESTIONS ABOUT
GENERAL ESCHEAT MATTERS

Below are frequently asked questions about the general subject of unclaimed property and escheat.

Q. What is escheat and unclaimed property?

Under unclaimed property statutes, the holders of abandoned property are required to transfer or pay abandoned properties to a State when it becomes presumed abandoned. The State is supposed to hold the property in the event it is claimed by its owner. “Escheat” is the process of transferring the abandoned property to a State. The abandoned property sometimes is referred to as “unclaimed property.”

Q. Which governments regulate escheat and unclaimed property?

In the United States, each State has enacted an unclaimed property statute that regulates escheat. These statutes are the primary sources of escheat regulation. However, the state laws are impacted by rules set at the federal level including priority rules set by the U.S. Supreme Court and guidance released by the CFPB. In addition, some foreign governments have addressed escheat.

Q. Do your services address all of the state statues and federal rules?

Yes. We address the unclaimed property laws of all fifty states and six territories. We also address the priority rules set by the U.S. Supreme Court and CFPB guidance. And, our systems are internationally scalable.

Q. What are your escheat compliance services?

Card Compliant provides escheat services to clients who wish to outsource compliance with the unclaimed property laws. Our services are supported by propriety processing systems which track the items for their escheat status and support the release of escheat due diligence notices and the filing of state escheat reports.

Q. What are escheat due diligence notices and state escheat reports?

The escheat laws require escheat holders to deliver or pay unclaimed property to the States. That process is accomplished by filing a “state report” with each State. The state laws may also require escheat holders to send notices to the item or cards owners providing then an opportunity to retain or use the item prior to escheat. The process of sending these notices is known as “due diligence.”

Q. Who are the escheat holders?

In the world of unclaimed property laws, the term “holder” is a term of art referring to the company required to escheat. The escheat statutes typically define the term in legal terms. With respect to payment instruments and prepaid cards, the holder typically is the instrument issuer, card issuer or prepaid access provider – although the legalese in the laws will control. Explore our Escheat Holder services.