BENEFITS

Reconnecting and reactivating owners through location to obtain current address information and robust outreach will result in less unclaimed property to track, maintain, and process. This will result in less resources being needed to complete the compliance steps associated with reporting, remitting, and transferring unclaimed property to states. Also, it can mitigate audit risk by reducing any potential findings and associated penalties or interest.

Reduce Fraud Risk: Mailing to inaccurate/old addresses generates return mail and the associated time and costs to process it. Also, there can be an increased risk of fraud with mail being delivered to incorrect addresses. Not to mention, with accurate addresses more mail gets through; allowing unclaimed property holders, including banks, credit unions, financial institutions, and other companies to reconnect with and reactivate their customers, members, accountholders, vendors, securityholders, insureds, etc.

Engender Good Will: People are not universally aware of state unclaimed property laws, especially the escheat side; not surprisingly, some are very unhappy when their property is reported and remitted to state unclaimed property divisions. Even if unclaimed property is turned over to states according to state laws, it can be burdensome and frustrating for owners to reclaim property from states. Alongside the goodwill it creates to reconnect with owners, depending on a company’s business, it can be advantageous to keep assets under management and more economical to reactivate customers than bearing the cost and uncertainty of acquiring new ones. Also, going above and beyond routine compliance, owner outreach and mailing requirements decreases reputational risk.

IS REENGAGEMENT RIGHT FOR EVERY COMPANY?

No, there are situations where it does not make sense to explore advanced owner location efforts. For example, when checks are made out to extras on a movie set the day of filming and not much detail is captured on owners. Another example could be a holder that pays out checks for recycled aluminum. In these examples, the checks are not likely to be high dollar amounts and sufficient details to find owners may not have been captured at the time the checks were issued. Efforts to reconnect with these owners generally are not successful.

CAN THESE EFFORTS BE TAKEN ON INTERNALLY?

Of course, internal programs can take different forms, such as a sales outreach effort to all customers with a credit balance; reminding them they have a credit balance and would they like to apply that to their next order. Outreach to inactive accounts could be rolled into larger marketing efforts. Another alternative could take the form of an email letting account owners know it has been over a year since they logged into their account online and request for the owner to log in and confirm account details, such as address. Holders could even conduct outbound phone contact efforts if the materiality of the account merited it.

WHEN DOES IT MAKE SENSE TO HIRE A VENDOR?

This can depend on several important factors including the type(s) of business the holder conducts, the dollar amounts/value of the inactive property, the volumes of property, the profile of the owners (board members, officers, etc.), the level of owner details available, etc. If holders have high dollar/value accounts and/or high-profile owners, with sufficient owner detail, finding owners is optimal.

It could be time to consider enlisting outside services if there are no internal resources on hand to conduct enhanced outreach or the volume of accounts/property is too high to take on internally. Outsourcing this work could be a lifeline. Reengagement through owner location and advanced outreach can yield major retention benefits. Ultimately, the value of reengagement depends on the specifics of a situation, the disadvantages of not finding owners, and the advantages of finding owners.

Whether it is an ongoing effort, a records cleanup, or to reduce audit findings, for companies holding dormant property, there are clear benefits for companies to go beyond the minimum requirements to reconnect, reactivate, and reunify with their owners. The Linking Assets Inc. team is happy to discuss your specific circumstances and customize a reengagement program to suit your needs.

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