Got Uncashed Checks?

oschecksIt’s one of those tasks that happen once a year, and like audits, nobody likes to talk about it: escheating of unclaimed funds to the State of California. Every year, we watch thousands upon thousands of dollars being sent to the State for uncashed, outstanding checks. I see refund checks in excess of $2,000.00 being remitted and I have to ask, where are these people? Don’t they WANT this money?

Problem is, it’s been three or more years since the escrow company has had any contact with this party. Not only is the file in storage, but the payee has probably moved twice since the check was issued. Or maybe it’s a termite company check, a termite company who’s now out of business (probably because he lost your check!)

What to do? Don’t wait three years! As painful as it may be to put an employee on a non-income producing task, you should be monitoring your outstanding check list monthly; when October comes and you are charged with the obligation of dealing with those unclaimed monies, you should not have more than a few items to disburse. Better still, keep your outstanding check list pared down to just the previous year’s checks. Catching these items sooner greatly improves the chances of finding the payees and re-issuing their lost funds. And you can sleep better at night, knowing the State isn’t the happy recipient your clients’ money!

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