by Michael Neff
First of all, I wish to thank Liz for allowing the space to write this article about the actions taken by Banner Bank of Anacortes, WA, in closing my account and wiring all my funds to the District of Columbia--just as many years ago she allowed the posting of an article about my daughter being unfairly burdened by an enormous and ruinous air ambulance bill.
This is a preliminary post that will be followed by a more detailed article that concerns the process of "escheatment" as its known in the state business of liquidating stock, bank, IRA, and other types of investment or "money holding" accounts after a period of "dormancy" determined by state law (usually only three years). Over the past two decades, state governments from coast to coast have repeatedly lowered the ceiling on escheatment criteria. Why? Because each time they lower the ceiling, they collect tens of millions more dollars for the state treasury. In other words, when a state says the "dormancy" limit is three years, that means at the crack of escheatment doom in three years, if YOU have not specifically engaged in certain types of activity with that account (as recognized by the state), they simply close the account and wire ALL your funds to the appropriate state government treasury.
To make it clear, they are compelled into this gutting of your funds by state law, however, here's the clincher: the bank or financial institution often makes no real effort to inform you. Despite having your email and phone number, they may not use them to contact you. They send ONE notice only which you might mistake for a statement or an advertisement, and nothing else. Again, this is hard to believe, but it is a fact. This is precisely what happened to me with regards to the escheatment of $10,000.00 by Banner Bank.
As I noted, there will will be much more to follow, and with links to studies and case law involving this issue that is behind closed doors and misunderstood by the vast majority of Americans who have never heard of it.
This sounds crazy, and it is, but it is not a joke. It was Banner Bank in Anacortes, WA, that failed to take adequate steps to inform me, canceled my account without options, and wired my money to the District of Columbia treasury.
More to come.
