# Is your Bank Account Safe? Not!



## RevWC (Mar 28, 2011)

Australia Seizes 360M From Dormant Bank Accounts And All 50 U.S. States Are Doing This Too
By Michael Snyder, on June 12th, 2014

Safe Deposit Boxes Do you have a bank account that you don't actively use or a safe deposit box that you have not checked on for a while? If so, you might want to see if the government has grabbed your money. This sounds absolutely crazy, but it is true. All over the world, governments are shortening the time periods required before they can seize "dormant bank accounts" and "unclaimed property". For example, as you will read about below, just last year the government of Australia seized a whopping 360 million dollars from dormant bank accounts. And this kind of thing is going on all over America as well. In fact, all 50 states actually pay private contractors to locate bank accounts and unclaimed property that can be seized. In some states, no effort will be made to contact you when your property is confiscated. And in most states, the seized property permanently become the property of the state government after a certain waiting period has elapsed. So please don't put money or property into a bank somewhere and just let it sit there. If you do, the government may come along and grab it right out from under your nose.

In this day and age, broke governments all over the globe are searching for "creative ways" to raise revenues. In Australia for example, the time period required before the federal government could seize a dormant bank account was reduced from seven to three years, and this resulted in an unprecedented windfall for the Australian government over the past 12 months...

The federal government has seized a record $360 million from household bank accounts that have been dormant for just three years, prompting outrage in some quarters amid complaints that pensioners and retirees have lost deposits.

Figures from the Australian Security and Investments Commission (ASIC) show almost $360 million was collected from 80,000 inactive accounts in the year to May under new rules introduced by Labor. The new rules lowered the threshold at which the government is allowed to snatch funds from accounts that remain idle from seven years to three years.

The rule change has delivered the government a massive bonanza with the money collected in the year to May more than the total collected in the past five decades combined.

Most Americans are not going to be too concerned about this because it is happening on the other side of the planet.

But did you know that this is happening all over the U.S. as well?

For instance, the waiting period in the state of California used to be fifteen years.

Now it is just three years.

And when California grabs your money they don't just sit around waiting for you to come and claim it. Instead, it gets dumped directly into the general fund and spent.

If you do not believe that California does this, just check out the following information that comes directly from the official website of the California State Controller's Office...

The State acquires unclaimed property through California's Unclaimed Property Law, which requires "holders" such as corporations, business associations, financial institutions, and insurance companies to annually report and deliver property to the Controller's Office after there has been no customer contact for three years. Often the owner forgets that the account exists, or moves and does not leave a forwarding address or the forwarding order expires. In some cases, the owner dies and the heirs have no knowledge of the property.

And it is not just bank accounts and safe deposit boxes that are covered by California law. The reality is that a vast array of different kinds of "unclaimed property" are covered...

The most common types of Unclaimed Property are:

Bank accounts and safe deposit box contents

Stocks, mutual funds, bonds, and dividends

Uncashed cashier's checks or money orders

Certificates of deposit

Matured or terminated insurance policies

Estates

Mineral interests and royalty payments, trust funds, and escrow accounts.

And when a state government grabs your property, the consequences can be absolutely devastating. The following is an excerpt from an ABC news report from a few years ago...

San Francisco resident Carla Ruff's safe-deposit box was drilled, seized, and turned over to the state of California, marked "owner unknown."

"I was appalled," Ruff said. "I felt violated."

Unknown? Carla's name was right on documents in the box at the Noe Valley Bank of America location. So was her address -- a house about six blocks from the bank. Carla had a checking account at the bank, too -- still does -- and receives regular statements. Plus, she has receipts showing she's the kind of person who paid her box rental fee. And yet, she says nobody ever notified her.

"They are zealously uncovering accounts that are not unclaimed," Ruff said.

To make matters worse, Ruff discovered the loss when she went to her box to retrieve important paperwork she needed because her husband was dying. Those papers had been shredded.

And that's not all. Her great-grandmother's precious natural pearls and other jewelry had been auctioned off. They were sold for just $1,800, even though they were appraised for $82,500.

And some states are even more aggressive than the state of California in going after bank accounts.

In a recent article, Simon Black noted that the state of Georgia can go after "dormant bank accounts" after just one year of inactivity...

In fact, each of the 50 states has its own regulations pertaining to the seizure of dormant accounts. And the grand prize goes to&#8230; the great state of Georgia!

Georgia's Disposition of Unclaimed Properties Act sets the threshold as low as one year.

In other words, if you have a checking account in Georgia that you haven't touched in twelve months, the state government is going to grab it.

So much for setting aside money for a rainy day and having the discipline to never touch it.

As economic conditions get even worse, the temptation for governments all over the planet to grab private bank accounts is going to become even greater.

We all remember what happened in Cyprus. When the global financial Ponzi scheme finally collapses, politicians all over the world are going to be looking for an easy way to raise cash. And our bank accounts may be one of the first things that they decide to confiscate.

So please don't keep all of your eggs in one basket, and check on all of your accounts in regular intervals.

In this day and age, it pays to be diligent.

http://theeconomiccollapseblog.com/...unts-and-all-50-u-s-states-are-doing-this-too


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## Hooch (Jul 22, 2011)

next will be negative interest rates on all deposits...


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## RevWC (Mar 28, 2011)

Hooch said:


> next will be negative interest rates on all deposits...


You are probably right..


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## hiwall (Jun 15, 2012)

Then it will be our gov seizing savings accounts and/or retirement accounts.


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## northstarprepper (Mar 19, 2013)

Do you ever notice how we all say the government or state government or the Feds? We have reached a point where the government no longer serves, listens, or cares about the people. On our end, there is a complete disconnect as well. WE are supposed to be the government...a government of the people, by the people, for the people. Today, we are so disconnected from them and they from us, it is no wonder we have scandals, incidents like the Bundy ranch episode, and these confiscations that in some cases are obviously nothing more than legalized theft. I just thought it was interesting how none of us, and actually no one I know ever speaks as if the government is really on our side...and I know lots of people on both extremes of the political spectrum. Strange how that has changed so much since I was young. Of course, that was a lonnnnnnnnnng time ago.


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## Geek999 (Jul 9, 2013)

The process of seizing deposits where the owner cannot be found is called escheatment. Basically, it provides that assets abandoned at a bank go to the state, not to the bank. It is not new but has been around for decades. Escheatment is covered under state law, not Federal law and the funds go to the state, not the Feds.

There was a wave of changes in the time a deposit could sit at a bank before it had to be escheated from longer periods, e.g. 5-15 years, to shorter periods, e.g. 3 years, in the 1980s. I have not heard of that happening recently, though I can easily imagine a state that didn't do it back in the 1980s doing it now to come more in line with the bulk of the states in the country.

A lot of what does get escheated today are small amounts, e.g. a check for $0.15 never gets cashed by the recipient and ultimately gets escheated to the state.

Some of the other suggestions in the thread, e.g. negative interest rates, seizing retirement accounts, about what the government might do are basically theories based on the fact that such things have occurred in other countries.

The important thing to note in each case the bank is (or would be) complying with government regulations, consistent with my past statements that banks are highly regulated and that banks will comply with government regulations to the best of their ability.


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## gabbyj310 (Oct 22, 2012)

After the I.R.S. took money from my saving account after I had been granted a "hearing" about my taxes.I knew that it would cost more to fight "THEM".So like many people I just chalked it up as " lesson learned"...Now I leave NO,NONE ,Nada money in my bank acoount except just enough to pay my bills.If I have extra I invest it in smaller items i.e.tools,seed.home improvements..They won't have a chance to get me again..


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## Woody (Nov 11, 2008)

Geek999 said:


> The process of seizing deposits where the owner cannot be found is called es*cheat*ment.
> 
> Interesting choice of words for the process.
> 
> ...


Our Beloved Federal Reserve would NEVER think of negative interest rates, or allowing banks to charge folks for having money in a bank! Zero interest is as low as it can go, right?


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## Freyadog (Jan 27, 2010)

Thumper gets paid on Thursday. No later than Saturday we have drawn out everything except enough to keep the account open.


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## Geek999 (Jul 9, 2013)

Woody said:


> Our Beloved Federal Reserve would NEVER think of negative interest rates, or allowing banks to charge folks for having money in a bank! Zero interest is as low as it can go, right?


Banks have costs and there is a cost to having money in a bank now. It would be more apparent if the Fed went to negative rates. They have thought of negative rates but to date they have engaged in Quantitative Easing instead.

Negative rates have been implemented elsewhere, so they are possible.


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## JayJay (Nov 23, 2010)

Freyadog said:


> Thumper gets paid on Thursday. No later than Saturday we have drawn out everything except enough to keep the account open.


Our 3 DD checks (disability and SS)are withdrawn by 9:00 am every deposit day.:2thumb:

NO money is left in for bills--cash all the way.


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## dixiemama (Nov 28, 2012)

Later this year when we can payoff our vehicles, we will have no use for our checking account. We are thinking of closing it out.


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## TheLazyL (Jun 5, 2012)

dixiemama said:


> Later this year when we can payoff our vehicles, we will have no use for our checking account. We are thinking of closing it out.


Hmmm.

Homeland Security Minion. Database doesn't show any bank accounts for Dixie. That is unheard of. Dixie must be hiding something. This will get me that promotion to Minion Second Class.

Punch in Dixie in the NSA data file 13. Search for all known associated address, subversive associations (like prepper forums, NRA, Tea Party, 501(C) & etc). Then cross link that information with the IRS. Contact FBI and ATF of a possible domestic terrorist.

Or leave the account open with just enough on deposit to cover some routine bills.

Message to NSA Minion. There is nothing to see here...move along.


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## LincTex (Apr 1, 2011)

I had about four bucks in an old savings account in a bank I had forgotten about in a town I only lived in for about 6 months....

Three years later, I did get a letter in the mail. They found me and told me I had 30 days left to claim it. I got busy and forgot about it. I had always figured it just went to the bank's pizza and coffee fund.

I always round up to the nearest buck when paying credit card bills, and had 31 credit cents on a JC Penney card I hadn't used in a while. They mailed me a check for 31 cents. I never cashed it.


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## Woody (Nov 11, 2008)

I would still keep the checking account, as long as they do not charge you for it. I would keep it active by taking out a few dollars and then depositing a few bucks in it now and again. Even 30+ years ago NOT having a bank account threw up a red flag. I was a mostly cash carpenter and every now and again needed to cash, or deposit a check. With an account, no problems, no questions. Without an account (at that bank anyway) LOTS of questions, delays, and issues.

My current checking account, I use it to write a check for the mortgage, once a month, that is it from there. It is active, they are happy and I can transact any business I like from there as I am a current customer.

Yes, going completely underground is one way to go. My thoughts are that is going to draw attention. Keep the status quo going, limit the profile, but be like a 'regular person'. I have no credit cards, never have, but I have a debit card. I use it, or try to, once a month... or two.. and then deposit cash in the account. My thoughts are that someone who charges $21.73 in gas now and again, then deposits $572.00 into the account now and again is less of a flag then someone who has NO account and there has been NO activity on that SS#.

It is their game, you need to be ready to play by their rules or be prepared to explain why not.


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## Geek999 (Jul 9, 2013)

LincTex said:


> I had about four bucks in an old savings account in a bank I had forgotten about in a town I only lived in for about 6 months....
> 
> Three years later, I did get a letter in the mail. They found me and told me I had 30 days left to claim it. I got busy and forgot about it. I had always figured it just went to the bank's pizza and coffee fund.
> 
> I always round up to the nearest buck when paying credit card bills, and had 31 credit cents on a JC Penney card I hadn't used in a while. They mailed me a check for 31 cents. I never cashed it.


State governments love you!


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## hiwall (Jun 15, 2012)

I had about $50 in paypal that I had forgotten about until I bought something on Ebay and when I went to pay it asked if they should use the paypal balance. It had sat idle for about 4 or 5 years.


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## Padre (Oct 7, 2011)

Sure it is... you will definitely get some paper with as many zeros as you have in your account back...the problem is that it might not be worth anything.

In reality this sort of purge is actually a good thing, I think. For various reasons people open accounts that get forgotten, perhaps with just cents in the account. Unless your agreement with your bank allows them to charge a fee there is no way to zero out these accounts which because of the ultra-low interest rate and the fact that their maintenance costs money, was likely costing the banks. The government seizing these abandoned account, yes, gives them some income, but it also helps the banks by providing a legal remedy for these nuisance accounts. Do you have a right to be secure in your property, yes, but as possession is 9/10th of the law an account that has been abandoned for so long may be considered abandoned.


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## BlueShoe (Aug 7, 2010)

I had $20 in a savings account that got taken. That was in the late 90s. Later, that bank had a $100 promotion for opening an account which I took advantage of. I would've left some money in that account but it was just over 200 dollars and they said they wouldn't allow me to withdraw something like $150 because of their policy against allowable lower limits on a balance. That was at closing one evening and they wouldn't make an allowance so I closed the account and withdrew it all.


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## RevWC (Mar 28, 2011)

Padre said:


> Sure it is... you will definitely get some paper with as many zeros as you have in your account back...the problem is that it might not be worth anything.
> 
> In reality this sort of purge is actually a good thing, I think. For various reasons people open accounts that get forgotten, perhaps with just cents in the account. Unless your agreement with your bank allows them to charge a fee there is no way to zero out these accounts which because of the ultra-low interest rate and the fact that their maintenance costs money, was likely costing the banks. The government seizing these abandoned account, yes, gives them some income, but it also helps the banks by providing a legal remedy for these nuisance accounts. Do you have a right to be secure in your property, yes, but as possession is 9/10th of the law an account that has been abandoned for so long may be considered abandoned.


How about the elderly with no children and multiple bank accounts? I get the $10.00 and less accounts. Are people notified? It just seems like the government being able to seize anything that isn't through due process is wrong.


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## Geek999 (Jul 9, 2013)

RevWC said:


> How about the elderly with no children and multiple bank accounts? I get the $10.00 and less accounts. Are people notified? It just seems like the government being able to seize anything that isn't through due process is wrong.


The practice of most financial institutions is to try to contact the account holder and get the matter resolved. When they are unable to reach the account holder, they then escheat the funds.


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## besign (Aug 9, 2014)

the only thing I trust is bullion coins, in holes in the ground. I thought of a great way to do this surreptitously, and also how to be able to tell someone else where each one is, without any risk of the message being intercepted. Of course, the person you tell could steal it, that's not interception of the message.


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## besign (Aug 9, 2014)

it IS due process if they state that they'll do it, when you open the account, or in the statues or regualtions about the statutes.


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## Geek999 (Jul 9, 2013)

Escheatment laws exist in all states and territories of the US. They have been on the books for decades if not longer.


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## Ozarker (Jul 29, 2014)

RevWC said:


> Australia Seizes 360M From Dormant Bank Accounts And All 50 U.S. States Are Doing This Too
> By Michael Snyder, on June 12th, 2014
> 
> Safe Deposit Boxes Do you have a bank account that you don't actively use or a safe deposit box that you have not checked on for a while? If so, you might want to see if the government has grabbed your money. This sounds absolutely crazy, but it is true. All over the world, governments are shortening the time periods required before they can seize "dormant bank accounts" and "unclaimed property". For example, as you will read about below, just last year the government of Australia seized a whopping 360 million dollars from dormant bank accounts. And this kind of thing is going on all over America as well. In fact, all 50 states actually pay private contractors to locate bank accounts and unclaimed property that can be seized. In some states, no effort will be made to contact you when your property is confiscated. And in most states, the seized property permanently become the property of the state government after a certain waiting period has elapsed. So please don't put money or property into a bank somewhere and just let it sit there. If you do, the government may come along and grab it right out from under your nose.
> ...


I'm afraid you're getting half truths with sensationalism and blatantly mislead. There are different dormant account rules, nothing is a credit to the government after additional statutory periods, there is a requirement by law to contact account holders, documents are not shredded they are held in trust at the state level which can be 7 to 30 years. Varies by state.

A bank account is considered a dormant account after 12 months without any activity, dormant account procedures to transfer funds usually don't kick in until after 3 years. At that point a new holding period is required they can't use it to pave the roads. Next, each state lists at least annually those assets held in trust. Some states take actions to find people some don't, but they all make the list available.

This is where the scammers come in, you have $362,896.22 due you, send me a check for $500 to clear up your account! It's public knowledge.

Yes, we do need to be diligent, call the dormant account holder in your state, either under the Treasury or the Sec. of State and inquire, it's free. Might as well ask about all your relatives and friends while you're at it, they can contact them and complete the claim for any asset held in trust.

Abandon property is different, it will be sold at auction, the funds held as mentioned before, the state isn't going to store your sail boat out of an estate. If assets are thought to be valuable and current market values can not be obtained it will be appraised prior to sale.

Dormant accounts are less than one tenth of one per cent of total deposits, lots of money but not when you consider the big picture.

Laws apply to such accounts and when and how assets are transferred or disposed of, those laws are enforced by FDIC, Comptroller of Currency, Treasure Department, State Finance/Banking Regulators, State Auditors and could be by the CFPB and FBI or any law enforcement agency having jurisdiction. Recent money laundering laws are broadly enforced.

So, to make it sound as if the government is stealing your money or that some state official can grab your money is walking on the crazy side with these accounts being audited and examined by so many different agencies for compliance.

The good advice, don't let accounts sit dormant, deposit a dollar every year or pull one out, that constitutes an account activity.

The reason for the laws and the attention is due to the fact that in the old days, banks would hold dormant accounts and banks would hit the account with increased service fees charging the account until the funds were gone! So, in this case, it was the big bad bank getting to folks, not the government. There are a few things the government does that actually benefit the people, (not everything but some things), this is one of them.  
:brickwall:


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