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Step 2

Step 1 - Determine Your Liability Step 2 - Perform Due Diligence Step 3 - Prepare Your Report Step 4 - Send Your Report

Perform Due Diligence

Now that you know which accounts are eligible, send a first class letter to the last known address of every owner with property valued at $100 or more.  
You must perform this duty at least 60 days prior to reporting the property as unclaimed. 

Example: For reports due November 1st, you MUST mail due diligence letters no later than September 1st.  For reports due May 1st, you MUST mail your due diligence letters no later than March 1st.  See the following tip!!
TIP: Mail your letters as soon after the cutoff date as possible (June 30th for most companies; December 31st for insurance companies).   This will allow you time to remove any accounts from your report where the owner has responded to your letter. 

Here is a sample letter for you to use as a guideline.

Sample Due Dilligence Letter

Mr. and Mrs. Good Customer

100 Any Street

Dear Mr. and Mrs. Customer:

            It is our policy to review and update our account records periodically.  Our records indicate no customer generated transactions have occurred on your account since (LAST DATE OF ACTIVITY).  State law requires us to report and remit the funds in this account to the state if we have not had customer-generated activity with you for a specified period of time.  To prevent us from reporting and remitting your account to the state unclaimed property office, please check the appropriate box, sign in the space provided below, and return this form to us no later than (60 days later).

          The above address information is correct for the account and I am aware of the account.

          Please change the account holder(s) name and/or address as follows:

            ___________________________________________________________

            ___________________________________________________________

           

          I wish to close this account.  Please send a check for the close-out amount to the following address:

            ___________________________________________________________

            ___________________________________________________________

           

________________________                                                      ________________

Signature                                                                                          Date                           

Your assistance is appreciated.  If we can assist you in any way, please contact our office.

                                                                       

Sincerely

About Due Dilligence

For items $100 and greater in value, the law requires that written notice be sent to the owner’s last known address on the records. The notice must

  • inform them that their property is in jeopardy of being reported to the state as unclaimed
  • provide them with the opportunity to contact you regarding the property before it is reported
  • be mailed at least 60 days prior to reporting.

This process can be helpful. If your customer contacts you due to this correspondence, you will no longer have to report the property to the state and will have provided better customer service. .

Penalties for the failure to perform due diligence are specified in §55-210.26:1 (B). The fine, not to exceed $50, is applied to each account upon which due diligence was not performed.

Sample Due Dilligence Letter

Mr. and Mrs. Good Customer

100 Any Street

Dear Mr. and Mrs. Customer:

            It is our policy to review and update our account records periodically.  Our records indicate no customer generated transactions have occurred on your account since (LAST DATE OF ACTIVITY).  State law requires us to report and remit the funds in this account to the state if we have not had customer-generated activity with you for a specified period of time.  To prevent us from reporting and remitting your account to the state unclaimed property office, please check the appropriate box, sign in the space provided below, and return this form to us no later than (60 days later).

          The above address information is correct for the account and I am aware of the account.

          Please change the account holder(s) name and/or address as follows:

            ___________________________________________________________

            ___________________________________________________________

           

          I wish to close this account.  Please send a check for the close-out amount to the following address:

            ___________________________________________________________

            ___________________________________________________________

           

________________________                                                      ________________

Signature                                                                                          Date                           

Your assistance is appreciated.  If we can assist you in any way, please contact our office.

                                                                       

Sincerely

About Due Dilligence

For items $100 and greater in value, the law requires that written notice be sent to the owner’s last known address on the records. The notice must

  • inform them that their property is in jeopardy of being reported to the state as unclaimed
  • provide them with the opportunity to contact you regarding the property before it is reported
  • be mailed at least 60 days prior to reporting.

This process can be helpful. If your customer contacts you due to this correspondence, you will no longer have to report the property to the state and will have provided better customer service. .

Penalties for the failure to perform due diligence are specified in §55-210.26:1 (B). The fine, not to exceed $50, is applied to each account upon which due diligence was not performed.

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