Like many Americans, at one time or another, you’ve probably responded to a mail-in offer expecting a rebate check in return. Perhaps like some Americans, you’ve received that check and, for one reason or another, have left it uncashed. Ever wonder where those unclaimed funds go?
In 2006, the State of Iowa, joined by 45 other states, instituted an action against the largest rebate processing company in the country and three of its largest customers for an amount over $120 million. This action claimed that funds from uncashed rebate checks constitute unclaimed property and that the states are entitled to that money. Additional controversy has arisen about which party, the rebate processing company or its customer, is responsible to remit the unclaimed property to the states.
In 2009, the court ruled in favor of the states saying that uncashed rebate checks do constitute unclaimed property and the states are entitled to those funds. Additionally, the responsibility to remit the unclaimed property depends on the agreement between the rebate processing center and the customer.
Since the statutory language in Iowa's unclaimed property provisions is very similar to other states' provisions, this decision has had an impact on the entire nation.
To read more about this topic, click here.
For more information on the Real Estate and Construction Group at Skoda Minotti, visit our web site or contact us at 440-449-6800.