Over time, most businesses lose contact with a handful of customers and clients who disappear without closing their accounts. Not only a general nuisance, but these dormant accounts can also be a costly administrative burden unless they’re dealt with promptly.
Each year, millions of dollars go unclaimed in B.C. as unpaid wages, overpayments to debt collectors, dormant credit union accounts, outstanding proceeds from courts, pension plans, estates and forgotten real estate deposits. In fact, there’s a staggering $178 million currently sitting in orphaned accounts in the province still waiting to be claimed by the rightful owners, according to the non-profit BC Unclaimed Property Society.
“Businesses and organizations have an obligation under the Unclaimed Property Act to return unclaimed funds to the rightful owners,” says Executive Director of the BC Unclaimed Property Society, Sherry MacLennan. “All companies should have policies and procedures in place to track and process unclaimed accounts to comply with the Act.”
Under the Unclaimed Property Act, holders of forgotten funds must make a reasonable effort to locate and notify the owner of a dormant account if there has been no activity for a specified period, typically between one to 10 years, depending on the type of account. If they cannot locate the owner, holders must maintain a publicly searchable database of their unclaimed funds.
The BC Unclaimed Property Society has served as a “lost and found” for unclaimed money since 2003. Transferring unclaimed funds to the Society fulfills a company’s legal obligations under the Act and releases the business from the responsibility of managing dormant accounts.
The Society’s staff actively searches for the owners of forgotten funds and maintains a free online database of unclaimed accounts that people can search to see if they have money waiting for them.
Provincially regulated credit unions, debt collectors, real estate agencies, companies in liquidation, B.C. courts and municipalities are required under B.C. law to transfer unclaimed funds to the Society if they cannot contact the rightful owners. Banks, which are federally regulated, follow a different process.
Other organizations holding trust funds, insurance policies, brokerage accounts and closed pension plans may also transfer their unclaimed property accounts to the Society if they are unable to find or contact the rightful owners.
In 2021, the Society received $4,070,621 in unclaimed funds from financial institutions, companies, courts, tax offices and the Public Guardian and Trustee of British Columbia to reunite with the legitimate owners. Each year, the Society transfers a portion of unclaimed funds to the Vancouver Foundation to support community and social programs.
Sherry MacLennan, Executive Director of the BC Unclaimed Property Society. Photo via: BC Unclaimed Property Society.
Vancity has worked with the BC Unclaimed Property Society since it was established. Over the last five years, Vancity has remitted more than $1.7 million in dormant accounts to the Society.
Credit union accounts are designated “dormant” after ten years of no activity.
Vancity annually reviews accounts for inactivity. The credit union’s computer system flags an account after nine years of no transactions. From there, it sends a notification to the account holder at their last known address, informing them of the inactive account.
“It’s our obligation to remind people that this money exists and help reunite them with their unclaimed funds,” says Ritu Linfoot, Director of Operations and Enterprise Risk Management at Vancity. “We can’t reactivate a dormant account on behalf of a person. It must be member generated.”
If the credit union cannot contact the member about their inactive account, the funds are transferred to the BC Unclaimed Property Society through its secure online portal.
“Everything is electronic,” notes Ursula Ettinger, Manager of Central Administration and Payment Systems at Vancity. “The process works extremely well. It really is seamless.”
Credit union staff often work closely with the Society when a member files a claim but doesn’t have the appropriate documentation. In this case, the Society will refer the claimant back to Vancity to obtain the proper records to verify the claim.
“It's hard enough to save money today. You don’t want to leave anything on the table,” states Linfoot. “Reuniting people with their unclaimed funds is the right thing to do.”
To learn more about how to approach handling unclaimed funds, visit unclaimedpropertybc.ca.
