Unclaimed Property and Corporate Compliance News

AMEX with Partial Victory in Kentucky on Traveler's Checks

Photo by smokedsalmon on FreeDigitalPhotos.netTraveler's checks are a big business for American Express. The company recently won a partial victory in Kentucky, after the 6th Circuit Court of Appeals held that the state's reduction in dormancy period was not retroactive. In 2008, Kentucky lowered the dormancy period from fifteen years to seven years, but did not include an effective date.

Don't Let the Budget Forecast Fool You

Spreadsheet DataToday, the Delaware Economic and Financial Advisory Council ("DEFAC") released its latest revenue forecast. For Fiscal year 2013, abandoned property actual collections were $566.5 million ($5 million over their May forecast). The forecasts for 2014, 2015 and 2016 show collections at only $514 million.

CFPB Issues Bulletin Regarding Payroll Card Accounts

Credit CardsIn an attempt to reduce costs and potential unclaimed property, companies have begun requiring employees to use direct deposit. However, many employees, particularly in the service industries, do not have access to a traditional bank account to deposit their wages. In order to compensate these employees without the need to issue a check, companies have turned to payroll cards.

Lost That Loving Feeling in Delaware

JokerIn the early 1900s, Delaware established itself as the place for corporations to incorporate. Delaware consciously set out to become the state to be incorporated in by establishing an advanced corporation statutes, a highly respected Court of Chancery, and a proactive Secretary of State's office. As a result of these efforts, over half of the current Fortune 500 companies are incorporated in Delaware and the state has over one million registered entities. Virtually every provision of the Delaware corporate code has been addressed in case law by the Court of Chancery, giving large corporations a large amount of certainty in any actions they take or disputes they encounter.

This certainty is almost completely wiped out when unclaimed property is thrown in the mix.

Alberta Will Not Accept Securities or Safe Deposit Boxes in 2013

Last week, Alberta, Canada issues a notice to all holders that it will not be accepting unclaimed securities or safe deposit boxes in 2013. This results from a one-year suspension due to a review of the application of The Unclaimed Personal Property and Vested Property Act and associated regulations. The review should be completed by the middle of 2014.

Other property types do not appear to be affected by this announcement. Should your company have property reportable to Alberta, please contact us for further information on how to complete the reporting process.

Texas Supreme Court to Address Class Action Settlements

Photo by smokedsalmon on FreeDigitalPhotos.netThe Texas Supreme Court has agreed to hear Highland Homes, Ltd. v. State of Texas, a case concerning the unclaimed proceeds of a class action settlement.

Barganier Quoted in Tax Analysts

Tax Analysts is covering Mark Udinski's departure as State Escheator from Delaware. In today's article "Delaware Deputy Finance Secretary Assumes State Escheator Duties," author Maria Koklanaris quotes Patricia Barganier Thorn.

Dave Gregor Named Delaware Escheator

Delaware Secretary of Finance has announced that David Gregor will be the new State Escheator. This is the position left open by Mark Udinski's July 31, 2013 departure for Kelmar Associates.

Udinski Joins Kelmar Associates

Udinski joins Kelmar Associates, an unclaimed property contingent fee audit firmAs expected, Mark Udinski, the former head of Delaware's Unclaimed Property division, has officially joined Kelmar Associates, according to a press release on the company's website. His new job title is Managing Director of Kelmar's Glenn Mills, PA office.

Delaware State Escheator Stepping Down

Delaware Division of Revenue - Unclaimed PropertyBarganier and Associates has confirmed that Mark Udinski is stepping down as Delaware’s State Escheator as of August 1, 2013. The position is the head of the state’s unclaimed property division, which has come under fire for overly aggressive audit and enforcement tactics. A replacement has not been immediately announced by the Secretary of Finance Tom Cook.