We mailed our due diligent letters for outstanding checks. Many checks have been reissued to the same address but do not clear. The address we have is correct. How many times are we required to reissue the check before escheatment can happen?

Follow

Technically, each request by the vendor to reissue the check begins the process anew, i.e. you now track the dormancy period on the last contact. However, if it's happened many times with the same vendor, we suggest you contact the vendor and find out why they are not cashing your checks. Perhaps someone in AR is having difficulty knowing how to apply the check.

We confirmed this with Karen Anderson, an unclaimed property expert with Abandoned Property Services. She agreed and shares a concern about the vendor. It's time for a phone call to resolve this.

However, it also may not be unreasonable for you to tell the vendor at some point that you are going to escheat the money to the state, and that the vendor can apply to the state for it. (We recommend that you talk to the state involved prior to doing this.)

As a caution, keep in mind that if they have an incompetent receivables process, they may not be a reliable vendor-if they are not cashing checks and applying payments, they may be under constant cash flow pressure, and their reliability may be called into question.

Have more questions? Submit a request

Comments