Unclaimed checks in California

Updated

An uncashed check does not just expire. When the issuer cannot reach the payee, it reports the amount to the California State Controller, which holds it for the payee.

The checks that end up with the state

Uncashed checks held for business-type owners owed $10,000+
Check typeAmountWhat it is
Vendor checks$22.9Mchecks written to a vendor that were never cashed
Cashier's checks$21.7Mcashier's checks bought from a bank and never cashed by the payee
Miscellaneous outstanding checks$13.7Mchecks of other kinds that were never cashed
Bank-issued checks$10.3Mchecks issued by a bank on its own account that were never cashed

Add accounts-payable payments ($36.7M), many of which began as checks, and checks are one of the largest sources of business unclaimed property.

Why checks go uncashed

Claiming an uncashed check

Do not try to deposit the old check. Claim the funds from the Controller with proof that the business was the payee at the address on the record, plus proof of authority and the FEIN.

Sources

Related