Paypal "New" policy---Beware---

[Fjd]

https://www.sec.gov/answers/escheat.htm

 

Here is a quick Google search. I have seen quite a few other links where the money has been dormant for only months when it was confiscated. Another...

 

http://www.theblaze.com/stories/2014/06/17/this-is-such-a-dangerous-thing-you-might-be-shocked-to-learn-what-the-government-can-do-with-so-called-inactive-bank-accounts/

 

 

Thanks.  I misunderstood as I thought you may be referring to something new at the Federal level in the name of security and the only thing I remembered was the OFAC. 

 

I see that you were actually referring to State rules related to the various individual State escheatment processes for funds that are abandoned.  The issues around various States are not necessarily new and yes, while the financial institution monitors for inactivity for a period of three to seven years, including required notifications to the last know address, the time period that the States hold the financial assets has been shrinking.  Depending upon the type of financial asset, the timeframe can be as small as three years to as long as 15 years for certain financial assets in certain states.

 

Basically, there were financial institutions that would tend to “hide” accounts on their books in the hopes that they were unclaimed and no one would realize they were gone.  The escheat laws were created as a control or type of monitoring tool over the banks and intended to create a type of "lost and found" that is administered at the state level.

 

Now what you are seeing in the links is where States are looking for ways to cover their budget shortfalls (an issue that has been magnified by the credit crisis) and have shortened the escheat period to move the money into their general funds.  Depending upon the amount at the State level, it may be the path of least resistance vs raising taxes.

 

It pays to monitor the states where you have lived in the past.  Periodically, I have gotten together with my sister to search the states where we have lived and where our immediate relatives have lived.  So far the largest find was ~ $5,000 for my aunt.

 

The only advice I have regarding how to avoid escheat is as follows;

 

Keep your address up to date with all financial institutions and employer.

Cash all checks.

Open all mail from financial institutions.

Keep a list of all accounts and account numbers.

Edited May 9, 2015 by Fjd

[minermark]

https://www.sec.gov/answers/escheat.htm

 

Here is a quick Google search. I have seen quite a few other links where the money has been dormant for only months when it was confiscated. Another...

 

http://www.theblaze.com/stories/2014/06/17/this-is-such-a-dangerous-thing-you-might-be-shocked-to-learn-what-the-government-can-do-with-so-called-inactive-bank-accounts/

This is where the NSA "Monitoring" comes to play.

Every ATM transaction we do everyday is monitored, i know, i have had a personal friend that did this daily.

But this is off topic.

Edited May 10, 2015 by minermark

[mxr dad]

One thing my bank told me about FDIC and just taking the words out of their mouth, as I havent searched and have no link, but they told me this about FDIC:

 

True, your money is insured through the FDIC, BUT, there are no time frames when it will show up and be available to you. A year? Maybe. 2 years? Maybe. But eventually, yes. HHMMM.

 

Paypal is forcing many of the folks, likely me included, to no longer accept Paypal. I hear too many horror stories where the seller gets screwed  even though the item is exactly as described. Its their word against yours and it appears PP will side with the buyer in order to satisfy their "customers". There are too many unscrupulous people out there. 

[Paducah Home Theater]

I was thinking about this last night. I think the horror stories you hear are likely due to smaller accounts. I mean, if there is 10 grand sitting in an account and you get a $500 chargeback, you might consider that to simply be a part of business. However if you've got a $500 account and suddenly you get a $500 chargeback, it's ERMAGAHWD, THEY LOCKED MY ENTIRE ACCOUNT! At that point other people might believe that paypal has power over your bank to literally lock and place a hold on the entire account iself, without the bank's or your permission to do so.