Warren Seeks Data on States Seizing Americans' Unclaimed Assets

Warren Seeks Data on States Seizing Americans' Unclaimed Assets

"Property owners are increasingly suing states to access their unclaimed property, suggesting that the current processes in place for owners to reclaim their property may be ineffective."

"The trends in the rise and novel uses of escheated funds raise significant concerns about whether states have appropriate incentives and procedures in place to reunite unclaimed property with its rightful owners."

Text of Letter (PDF)

Washington, D.C. - U.S. Senator Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee, sent a letter to the National Association of Unclaimed Property Administrators (NAUPA), raising concerns and seeking data regarding recent trends in states escheatment laws that govern how owners can reclaim lost or forgotten property and when states can seize the assets.

"State escheatment laws have significant implications for Americans' financial security. While some property is legitimately abandoned, many individuals have simply forgotten about their property entirely, do not know the money exists, or do not know that they can claim it," wrote the Ranking Member.

"Trends in state escheatment laws may be increasing the likelihood that property is designated as unclaimed and turned over to state governments," wrote the Ranking Member. "(M)any states have started adopting a more aggressive 'inactivity' standard… This is exacerbated by the fact that states have also moved to shorten their dormancy period to three years from five."

"Shortening dormancy periods and starting the clock at the first sign of inactivity in many ways undermines the most common and often prudent strategy for investing, which is to 'buy and hold.' Many workers investing for retirement are not constantly checking their accounts, as expected with an investment management professional," wrote the Ranking Member.

The Ranking Member concluded by requesting data on state laws on escheatment and a state-by-state breakdown on escheated funds, writing, "Congress must ensure that investor protection standards are being upheld as states change their escheatment processes. To help me better understand how NAUPA and state treasuries are tracking and reacting to state escheatment policy changes and their impacts on investors, I request that you respond to the following inquiries no later than May 1, 2026."

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