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Uncashed checks and escheatment

I apologize if I am posting to the wrong group, but I received a letter in the mail which I don't understand. It reads as follows:

Our records indicate that you are (were) the registered owner of stock in Port Financial Corp and that the above-referenced address is your current address of record.

As of this date, our records also indicate that there are aged uncashed checks made payable to this account. State escheatment laws treat aged uncashed checks as abandoned property. Once property is escheated the state becomes custodian for the property. You do not lose your rights to the property and may file a claim with the state to obtain it.

This letter is to advise you that this property is liable for escheatment to your state of residence unless we receive a written response from you within 15 days of the receipt of this letter. A postage paid envelope is enclosed for your response. Upon receipt from you, we will automatically stop and replace any aged outstanding checks for this account and mail the replacement(s) to you. If you subsequently locate the original checks, they should be destroyed.

[end text]

Can anyone explain to me what this is about? What are these uncashed checks? Why didn't I know about them before? Why would I need replacements for them? The letter writers are asking for my social security number, which makes me suspicious.

Thanks for the help.

Steve

Reply to
szwanger
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wrote

Apparently you own some stocks, either purchased or inherited, and that you haven't cashed out the dividend checks.

Probably dividend checks. Probably not very big either, but one never knows.

You could have forgot about them. What with today's fast paced formation, mergers, liquidations, buy-outs, spin-offs, split-offs, split-ins, and other corporate happenings, I doubt the most savvy investment person can track it all.

You could have inherited them from some great lost uncle or a friend whom you have lost track of.

I'd want the money. Don't you?

Look up the company on the web, and call that number (not the one on the letter). They'll tell you if it's all legit or not. Or, let it roll to the state, and get it from them in a couple of months or years. Also, if there are spelling errors on the letter, it's probably not legit (or it was typed by someone like me).

They do need your SSN for tax reporting purposes on the dividends. They will be income in this year (if you get the checks). BTW: the state will also need your SSN to cut loose the unclaimed property.

As a side note, unclaimed property is a big deal in every state. It totals millions of dollars and hard assets (jewelery, furs, cars, etc) as well. Some are just pennies, in say overpayments to hospitals, remaining interest on closed bank accounts, uncashed payroll checks, etc and so on.

Reply to
Paul Thomas, CPA

There is a popular recurring scam - "services" that promise to track down your uncashed dividend/interest checks, inactive bank accounts, forgotten share certificates, etc. The only thing these services actually do is to search publicly-accessible lists, something you CAN do yourself. Some of the services are legitimate - they know how to access the lists and they have the facilities to do it efficiently, which can save you lots of time and effort - but they typically charge a very hefty 50% of whatever assets they find. The more dubious services charge a non-refundable up-front fee with lots of tempting hints about the vast fortunes that may be awaiting you.

As Paul advises, check them out before giving them ANY personal information (or money). Check them out by any means available to you - Better Business Bureau, federal/state/provincial consumer protection agency, your bank/investment advisor, etc.

"Paul Thomas, CPA" wrote ...

Reply to
!-!

Thanks a lot for the explanation and the advice! I really appreciate it.

Reply to
szwanger

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