Patrick J. Diegnan, Jr., Paul D. Moriarty and Gordon Johnson, New Jersey Assemblymen, sponsored a bill in May 2012 to reverse some changes to laws governing the State’s treatment of unclaimed property. This was done only after receiving complaints from businesses and consumers about the State’s 2010 changes to the abandonment periods for escheatment on travelers checks, money orders, and stored value cards (SVCs), also called gift cards.
Patrick J. Diegnan, Jr., Paul D. Moriarty and Gordon Johnson, New Jersey Assemblymen, sponsored a bill in May 2012 to reverse some changes to laws governing the State’s treatment of unclaimed property. This was done only after receiving complaints from businesses and consumers about the State’s 2010 changes to the abandonment periods for escheatment on travelers checks, money orders, and stored value cards (SVCs), also called gift cards.
“Under New Jersey’s system of escheat, travelers checks, money orders, and stored value cards, that have gone unused for a specific period of time must be handed over to the State’s unclaimed property department where they remain available for the rightful owners to make a claim” says Edward Palonek, founder of foundmoney.com. Foundmoney was the first company to make unclaimed property records searchable on the Internet in 1995.
As an ancillary component to the State fiscal year 2010-2011 budget proposal, the Governor of New Jersey proposed various revisions to rationalize the State’s statutory treatment of unclaimed property.
The reason for the change was the significant uncertainty for consumers and businesses when the new Bill aggressively shortened periods of abandonment for money orders and travelers checks thereby shortening the time to report that property to the State. The Bill also authorized the State escheatment of unused stored value cards.
The new Bill called the S1962, reverses the 2010 changes as to the State’s abandonment periods for travelers checks, money orders, and escheatment of stored value cards. In a nut shell, the new 2012 bill restores the 15 year abandonment period for travelers checks issued on or after the date of enactment and restores the seven year abandonment period for money orders issued on or after the date of enactment. Under the 2010 changes, both travelers checks and money orders were subject to a three year abandonment period.
The Bill provides that stored value cards issued on or after the bill’s date of enactment are no longer subject to State escheatment. The new Bill also grants the State Treasurer emergency regulatory authority for implementation.
“This Bill is great news for businesses and consumer that may have forgotten about or have not had a chance to use their unclaimed travelers checks, money orders or stored value cards, says Palonek.