![]() The rules that place most types of unclaimed property in Delaware remain intact. New Jersey decision.Ĭongress passed the FDA so that money orders and similar written checks would escheat to the state in which the check was purchased. The checks require a purchaser to prepay the amount of the check and a fee that MoneyGram holds until the payee presents the check for payment.īecause the court found the checks were "sufficiently similar" to money orders they are to be governed by a 1974 Congressional act called by the Disposition of Abandoned Money Orders and Traveler's Checks Act (FDA) rather than the common law established by the Texas v. The case hinged on whether certain MoneyGram products including agent checks and teller's checks were "sufficiently similar" to a money order. Mayrack emphasized that the scope of the Supreme Court's decision was limited. Mayrack said Delaware collected about $20 million from MoneyGram each year prior to the case. Pennsylvania estimates the company put $94 million in that account plus an additional $10-$15 million in another escrow account between 20.Ĭraig said Pennsylvania estimates Delaware collected between $250 and $300 million from MoneyGram checks since the early 2000s. In 2018, MoneyGram started placing its unclaimed property in an escrow account to await the court's decision. Mayrack was appointed Delaware State Escheator and Director of the Office of Unclaimed Property in 2018. "Delaware has paid out a significant amount of claims on this property, so all of this data has to be reconciled."īrenda Mayrack receives condolences from then-Congressman John Carney after losing a race for state auditor in 2014. ![]() “It’s fairly complicated because the place of purchase data does not sit with Delaware," said Delaware State Escheator Brenda Mayrack said. Lawyers on both sides will be haggling over how far back Delaware's liability stretches, how much each state is owed and whether Delaware owes interest and damages. The Supreme Court conducted the case in two stages: first a liability stage and second a damages stage.Īfter ruling in favor of the challenging states, the case now returns to a special master appointed to the case to determine how much money Delaware wrongly claimed must returned to the states in the lawsuit. In Delaware, it goes into the general fund and recoveries are paid out as they are received.ĭELAWARE DEVELOPMENT: Demolition of Tri-State Mall underway, a sign of retail's changing tides in north Delaware What happens next Some states keep unclaimed property in a separate fund until it is returned to its owner. If it's not claimed, the property is supposed to go toward the benefit of the community it's derived from. Giving all abandoned property to the state also provides one-stop shopping for those looking to recover property.Įvery state has an unclaimed property office that is supposed to work to return the property to its rightful owners. If the companies kept the property they could sweep that money into their income, state proponents say. "It shouldn't be to balance the budget of one state."Īn argument in favor of unclaimed property reverting or "escheating" to state governments is an argument against allowing banks and other companies to retain control. "This case is about returning to what Congress said should happen ," Pennsylvania Chief Counsel Christopher Craig said. Pennsylvania Treasurer Stacy Garrity estimated in September that Delaware could owe $400 million. It will also sacrifice whatever it would gather in future years from MoneyGram checks (which are declining in use). The decision will cost Delaware hundreds of millions in back pay to the winning states. On the final day of February, the court ruled against Delaware. The case was a battle over MoneyGram agent checks and teller's checks and whether Delaware as the state of incorporation or the challenging states as the places of business had the right to claim them. Other states have accused Delaware of making unfair claims and failing to make a strong enough effort to return unclaimed property to owners.Īfter more than seven years of litigation, a case brought against Delaware by Pennsylvania and 29 other states was tried before the U.S. ![]() In previous years, unclaimed property seizures by Delaware have totaled more than $500 million and funded more than 10% of the state budget.ĭelaware's abandoned property claims are the subject of regular legal challenges. ![]() In 2023, it's projected that unclaimed property will contribute $394 million to the state's $6.2 billion budget (accounting for about 6%). When their financial products go unused across the globe, Delaware demands they be remitted to the First State. There are about 1.8 million companies incorporated in Delaware, including about two-thirds of Fortune 500 companies. It's a side effect of the state's status as America's corporate capital. ![]()
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