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New York Comptroller’s Office Aims to Recover $20 Billion in Unclaimed Funds

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Representation of unclaimed funds in New York State

News Summary

The New York State Comptroller’s office is working to help residents reclaim over $20 billion in unclaimed funds from various sources. In the current year, over $251 million has been returned to residents, with a total recovery of $633 million last fiscal year. The office has implemented workshops and mailed automatic checks to help residents learn about and access these funds. Criticism has emerged about the efficiency of the current process, raising questions about the urgency of returning these finances to rightful owners.

New York – The New York State Comptroller’s office is actively working to help residents reclaim over $20 billion in unclaimed funds, which can stem from various sources such as utility deposits, trust funds, old bank accounts, uncashed checks, and unused gift cards. Comptroller Thomas P. DiNapoli highlighted that the Office of Unclaimed Funds returns an average of $2 million daily.

As of the current year, the Comptroller’s office has already returned over $251 million to New York residents. Over the last fiscal year, a total of $633 million in unclaimed funds was recovered, contributing to a running total of more than $7 billion since DiNapoli took office in 2007. There are currently over 831,195 unclaimed accounts in Nassau County alone, valued at over $611 million, with additional substantial amounts existing in Suffolk and Queens.

Currently, the New York State Comptroller’s office is safeguarding more than 55 million accounts, with the total expected to rise to $20 billion by 2025. This immense sum exceeds the entire annual budgets of numerous states. These funds, once surrendered to the state, are routinely utilized to help balance the state budget, having generated nearly $900 million in the last fiscal year.

In an effort to raise public awareness about these unclaimed funds, the Comptroller’s office is conducting workshops across the state throughout July, designed to educate residents on the process of claiming their money. Residents can search for unclaimed funds by visiting the New York State Comptroller’s website or calling a dedicated hotline at 1-800-221-9311.

In a new initiative to assist in reclaiming lost funds, the comptroller’s office has already mailed automatic checks to about 70,000 individuals, totaling approximately $5 million. However, the check clearing rate for these automatic payments stands at around 40%. Though there have been improvements in tracking down potential owners of unclaimed funds, privacy laws regarding access to recent tax data pose challenges for effective outreach.

In terms of efficiency, comparisons have been made with states like Florida and Illinois, which demonstrate higher percentages of unclaimed funds being returned to their residents. DiNapoli’s office acknowledges the pressing need to refine their processes but emphasizes that a hasty initiative to auto-mail the entire $20 billion could lead to significant complications without thorough verification mechanisms in place.

With criticism mounting, Drew Warshaw, a candidate challenging DiNapoli, pledges to expedite the return of unclaimed funds if elected. Under current state law, any funds exceeding $750,000 are transferred to the state budget, raising questions about the urgency needed in returning these finances to their rightful owners.

In response to concerns about the efficiency of their operations, DiNapoli’s office plans to evaluate the effectiveness of their new initiatives later this year to determine where improvements can be made. The future of reclaiming unclaimed funds in New York hinges on these assessments, as millions of dollars await recovery by their rightful owners.

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Author: HERE New York

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