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
| Check type | Amount | What it is |
|---|---|---|
| Vendor checks | $22.9M | checks written to a vendor that were never cashed |
| Cashier's checks | $21.7M | cashier's checks bought from a bank and never cashed by the payee |
| Miscellaneous outstanding checks | $13.7M | checks of other kinds that were never cashed |
| Bank-issued checks | $10.3M | checks 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
- Sent to an old address or a closed lockbox.
- Received by someone who has since left.
- Small amounts set aside and forgotten.
- Made out to an old company name the bank would not accept.
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.