What happens to unclaimed funds owed to someone by a creditor?
Full Question:
Answer:
Section 177.01 of Wisconsin Statutes states in part: “Intangible property” includes: Credit balances, customer overpayments, gift certificates, security deposits, refunds, credit memos, unpaid wages, unused airline tickets and unidentified remittances. Section 177.01 of Wisconsin Statutes.
Section 177.02 of Wisconsin Statutes states in part: Except as otherwise provided in this chapter, all intangible property, including any income or increment derived from it, less any lawful charges, that is held, issued or owing in the ordinary course of a holder’s business and that has remained unclaimed by the owner for more than 5 years after it became payable or distributable is presumed abandoned.
Section 177.03 of Wisconsin Statutes states in part: Unless otherwise provided in this chapter or by another section of the statutes, intangible property is subject to the custody of this state as unclaimed property if the conditions raising a presumption of abandonment under sections 177.02 and 177.05 to 177.165 are satisfied, and one of the following conditions is present:
(1) The last–known address, as shown on the records of the holder, of the apparent owner is in this state.
(2) The records of the holder do not reflect the identity of the person entitled to the property and it is established that the last–known address of the person entitled to the property is in this state.
(3) (a) The records of the holder do not reflect the last–known address of the apparent owner; and
(b) Either of the following is established:
1. The last known address of the person entitled to the property is in this state.
2. The holder is a domiciliary or a government or governmental subdivision or agency of this state and has not previously paid or delivered the property to the state of the last–known address of the apparent owner or other person entitled to the property.
(4) The last known address, as shown on the records of the holder, of the apparent owner is in a state that does not provide by law for the escheat or custodial taking of the property or its escheat or unclaimed property law is not applicable to the property and the holder is a domiciliary or a government or governmental subdivision or agency of this state.
(5) The last known address, as shown on the records of the holder, of the apparent owner is in a foreign nation and the holder is a domiciliary or a government or governmental subdivision or agency of this state.
(6) (a) The transaction out of which the property arose occurred in this state;
(b) Either of the following exists:
1. The last known address of the apparent owner or other per-son entitled to the property is unknown.
2. The last known address of the apparent owner or other person entitled to the property is in a state that does not provide by law for the escheat or custodial taking of the property or its escheat or unclaimed property law is not applicable to the property; and
(c) The holder is a domiciliary of a state that does not provide by law for the escheat or custodial taking of the property or its escheat or unclaimed property law is not applicable to the property.
Section 177.14 of Wisconsin Statutes states in part:
(1) A gift certificate or a credit memo issued in the ordinary course of the issuer’s business that remains unclaimed by the owner for more than 5 years after becoming payable or distributable is presumed abandoned.
(2) In the case of a gift certificate, the amount presumed abandoned is the price paid by the purchaser of the gift certificate. In the case of a credit memo, the amount presumed abandoned is the amount credited to the recipient of the credit memo.
Section 177.14 of Wisconsin Statutes states in part:
(1) A person holding tangible or intangible property presumed abandoned and subject to custody as unclaimed property under this chapter shall report to the administrator concerning the property as provided in this section.
(2) The report shall be verified and shall include all of the following:
(a) Except with respect to travelers checks and money orders, the name, if known, and last–known address, if any, of each person appearing from the records of the holder to be the owner of proper-ty with a value of $50 or more presumed abandoned under this chapter.
(b) In the case of unclaimed funds of $50 or more held or owing under any life or endowment insurance policy or annuity contract, the full name and last–known address of the insured or annuitant and of the beneficiary according to the records of the insurance company holding or owing the funds.
(c) In the case of the contents of a safe deposit box or other safekeeping repository or of other tangible property, a description of the property and the place where it is held and may be inspected by the administrator, and any amounts owing to the holder.
(d) The nature and identifying number, if any, or description of the property and the amount appearing from the records to be due, but items with a value of less than $50 each may be reported in the aggregate.
(e) The date the property became payable, demandable or returnable, and the date of the last transaction with the apparent owner with respect to the property.
(f) Other information the administrator prescribes by rule as necessary for the administration of this chapter.
(3) If the person holding property presumed abandoned and subject to custody as unclaimed property is a successor to other persons who previously held the property for the apparent owner or if the holder has changed his or her name while holding the property, the holder shall file with his or her report all known names and addresses of each previous holder of the property.
(4) Before May 1 of each even–numbered year, each holder shall file a report covering the 2 previous calendar years. On written request by any person required to file a report, the administrator may postpone the reporting date.
(5) Not more than 120 days before filing the report required by this section, the holder in possession of property presumed abandoned and subject to custody as unclaimed property under this chapter shall send written notice to the apparent owner at his or her last–known address informing him or her that the holder is in possession of property subject to this chapter if all of the following exist:
(a) The holder has in its records an address for the apparent owner which the holder’s records do not disclose to be inaccurate.
(b) The claim of the apparent owner is not barred by the statute of limitations.
(c) The property has a value of $50 or more.