The TRAP behind Web sites with “INSTANT” searches for Unclaimed Money.

There is no questioning that the amount of unclaimed money or property being held by both State and Federal agencies is staggering and growing each year – current estimate is believed to be in excess of $40 BILLION.

On the prowl for new sources of revenue, cash-strapped States are pouncing on UNCLAIMED PROPERTY by shortening the ‘dormancy’ period of most abandoned property and strictly enforcing their statues for holders or companies to transfer over these funds to the State’s custody. If a state audit discovers the company has been laxed or under reported these funds face stiff fines. As a result in the past few years, millions of unclaimed accounts worth over a $ billion are transferred to the States each year.

With all that said, the emergence of Unclaimed Money web sites have appeared on the Internet hoping to gain from such. Some are legit and do offer a valuable service and information to assist one in locating an unclaimed or lost asset. However, many offer a useless, misleading and costly service especially those that market themselves as “FREE” and “INSTANT” searches.

Here is the 3-prong trap and how it works:

There is NO National database for unclaimed accounts. Every State has its own Unclaimed Property Division and each Federal agency handles its own unclaimed accounts. All of the former and many of the latter have online databases for one to search.

The web sites have collected a few millions names with unclaimed accounts from States’ online databases that can be readily done with software that converts the online information into their own database. Even though these sites have only processed/collated only 5 million +/- accounts, their database will likely have 90%+ of all American last/surnames.

One is asked to insert your name into their search box…and the “Instant’ result says there is i.e.) $25,000 of unclaimed money in your name. Well, there can be many/hundreds of others with your name and their software generates varies spellings, variations of fist name or numerous first initials i.e.) if your name was Cathy Stevens, the query results would include: C. Stevens, Kathy Stevens, K. Stevens or if name was William Smith, the query results would include Will Smith, Bill Smith, Billy Smith, W. Smith and B. Smith. The web site’s software aggregates all amounts due under these variations to inflate the dollar amount…luring one into subscribing.

The 2^nd tier of the trap is more serious. They purport that they normally charge i.e.) $29.95 for a single search, but a special promotion allows unlimited searches for 30 days for only $12.95 – a deal right?! First of all, to conduct a thorough search, one needs to be checking regularly to find any lost asset. One’s unclaimed asset may not be transferred to the State and placed into its database until 2006 or 2007. One needs to have unrestricted access to the appropriate and current databases. Note again, these web sites’ databases are not only restricted, but also incomplete and not updated.

It gets better/worse. If one does not read the terms and conditions, you will be charged $29.95 at the end of the 30 day period if you do not cancel the subscription. Based on one’s credit card billing cycle, one may not see the second charge (assuming you forgot to cancel) in your statement until still another $29.95 is charged to your credit card.

Last, some of these services purport a 100% Money Back Guarantee. One gets his subscription back if the State says the unclaimed account found in their database is not yours? Their database information came from the State’s database. The information that accompanies the unclaimed account will definitely tell one if it is yours. One only gets a refund if the State refuses to return your rightful account. That is not legally possible. The guarantee is worthless. Plus any written correspondence to the State could take 4-6 months to confirm that the unclaimed account was never yours. These web sites are banking on one will not follow through and not bother to submit for the ‘Money Back Guarantee’ refund after 4-6 months.

Here are the sites that offer such services. They mask themselves under various URLs, but appear to be the same according to ‘Whois’.

www.cashunclaimed

www.cashclaim

www.Lost-Money.CashClaim.com

www.USunclaimed.com

www.Unclaimed-Prop.CashClaim.com

www.foundmoney.com

There are web sites that offer a valuable service for assisting one in locating unclaimed or lost assets. Just be cautious of these common and costly traps.

Thomas Tuke is the CEO of American Refund Services specializing in assisting others locate their unclaimed accounts without paying a Finder’s Fee.

www.Unclaimed-Databases.com

Often customers will ask us why they cannot find their unclaimed money in their State's Unclaimed Property online databases.

Here are few reasons why their search was unsuccessful:

1. The unclaimed account has not yet been transferred or 'escheated' to the State based on the State's dormancy period for that type of abandoned property.

2. Some States only list online the most recently transferred accounts and/or only list accounts above a specific value.

3. A few States (ie Wyoming) do not list the unclaimed account until it has been in their possession for 2 years.

4. They might not have followed the exact query instructions for that database - ie) Last name first, query is case or space sensitive or possibly the holder or the State had inadvertently misspelled one's name - the latter while entering the account into the database.

5. Unclaimed accounts such as cashier or traveler checks and money orders are transferred over to the State from the holder/issuer without a name but only a serial number, date of purchase and an amount.

6. Although one may have always lived and worked in the same State, the unclaimed account could be held by another State.

7. The unclaimed account is not an asset type that is transferred to the State but an account that will be transferred to a Federal agency. Each Federal agency handles its own unclaimed property. Only a handful of Federal agencies have online databases to search.

There are many other reasons and exemptions to the rules - bottom line is that one needs to check as many databases as possible and check them regularly.

American Refund Services offers full service to those searching unclaimed money through its 150 databases and other search reports at www.unclaimed-databases.com