USA Texas Escheatment

[shannons864]

I am not understanding this process very well. We have checks that haven't cleared for a few years. learning that we have to do this long process that isnt making since. Anyone know of a quicker tool or clarification on this???

I am inTexas.

 

[kirby]

State law says if you issue a check and it is not cashed by a certain period then the money is not yours to keep. If check was for $250 or more you have to try to contact payee. Anyway at some point you have to void the check and send that unclaimed money , of any amount not just the over $250, to the state. Then the state will hold the money until claimed. Again, money was not yours to keep. Yes, it is a pain .....

 

[shannons864]

State law says if you issue a check and it is not cashed by a certain period then the money is not yours to keep. If check was for $250 or more you have to try to contact payee. Anyway at some point you have to void the check and send that unclaimed money , of any amount not just the over $250, to the state. Then the state will hold the money until claimed. Again, money was not yours to keep. Yes, it is a pain .....

thanks Ken. I realize that part. my confusion stems from the detailed steps Texas has for doing all of their steps and processes to actually submit.

 

[kirby]

It is a labrious process. For those companies that can afford it, there are consultants who do the work for a fee. Usually though someone in a company gets stuck with the task and not a lot of glory or satisfaction is attached to it.

 

[shannons864]

that doesn't sound encouraging.

what happens when places advise they received the check and deposited it, but the check never cleared our bank.

 

[kirby]

Well there is a potential plus side that i forgot to mention: when you do the research on the check and find that the payee tells you (as in the case you mentioned) that the payee was paid on the check, then you can void the check and reverse the expense. Just get their statement in writing for your documentation. It is a plus for you and the company and there should be joy expressed by mgmt but you can come across some managers who "see the glass half full" and their comment will be "why didn't you look into this earlier?" Sheesh!
Why does it look like the check never cleared the bank? Usually (but not always) because someone who did the bank rec years ago goofed or the bank really did pay the payee but did not charge your account (bank error in your favor! like Monopoly).