What Happens to Dormant Accounts in Maine? Unclaimed Property Explained
Did you know that your credit union account could be considered “dormant” if it hasn’t had any activity in a while? While the term might sound concerning, a dormant account doesn’t mean your money is lost—it just means it’s time to take action. If you don’t, the funds in your account might eventually be turned over to the state of Maine as unclaimed property.
Let’s break down how this works, what you need to know, and how to avoid having your account go dormant.
What is a Dormant Account?
At Maine Family, an account becomes dormant when there’s no activity for three years. Activity making a deposit, withdrawal, or an automatic payment/deposit. Alternatively, you can contact Maine Family FCU and let us know that you want to keep the account active. If there’s no activity at all, your account is considered dormant.
But don’t worry—a dormant account doesn’t mean your money is gone! Dormancy simply means that the account hasn’t been used in at least three years. Although your money remains in the account, there can be consequences. Maine Family FCU charges a $25 fee when dormant accounts are closed after the three-year mark.
What Happens to Dormant Accounts in Maine?
In Maine, if an account remains dormant for too long, it may eventually be handed over to the state’s unclaimed property program. But what does that mean?
Maine Family FCU is required by law to contact the member regarding their dormant account. This is to alert them about the dormancy and encourage them to take action, such as making a transaction or contacting the credit union to prevent the account from being classified as dormant.
If these attempts fail and the account remains inactive, the funds are eventually transferred to the state as unclaimed property. The Maine Office of the State Treasurer holds these funds until the rightful owner claims them.
What is Maine’s Unclaimed Property Program?
Unclaimed property refers to money or financial assets that have been left inactive or forgotten for a certain period. In the case of dormant credit union accounts, if there’s been no activity and no response to the credit union’s outreach, the funds are turned over to Maine’s unclaimed property program. This program ensures that the money remains safe and accessible to the rightful owner.
When dormant account funds are turned over, the State of Maine holds onto these funds indefinitely, waiting for the rightful owner to come forward. This process ensures that your money remains protected, even if you forgot about the account or moved without updating your contact information.
How Can You Avoid a Dormant Account?
Here are a few simple steps you can take to avoid having a dormant account:
- Make regular transactions: Even a small deposit or withdrawal will reset the dormancy clock.
- Set up automatic payments or transfers: This ensures that there’s always activity in your account.
- Check your account online: Logging into your account regularly helps maintain activity status.
- Keep your contact information updated: If we can’t reach you due to an outdated address or phone number, you may not receive important notifications about your account status.
How Can You Check for Unclaimed Property in Maine?
If you think you might have an old account or other unclaimed assets, it’s easy to check if any funds have been turned over to the state. Maine provides an online search tool where you can look up unclaimed property using your name or business.
Here’s how you can check for unclaimed property:
- Visit https://www.maineunclaimedproperty.gov/
- Enter your name or the name of your business into the search tool.
- Review the search results to see if you have any unclaimed property.
- If you find unclaimed property, follow the instructions to begin the claim process.
This process is free, and it could lead to the recovery of forgotten funds! The State of Maine is currently holding nearly $339 million in unclaimed property!
Dormant accounts may seem like a hassle, but they exist to ensure your money is safe. If your account becomes dormant, Maine’s unclaimed property program provides a safeguard, ensuring your funds are still accessible when you’re ready to reclaim them.
Take a moment today to check the status of your accounts and ensure they’re active. If you’ve moved recently or haven’t checked your account in a while, contact Maine Family FCU to update your information. And don’t forget to visit the Maine Unclaimed Property website to see if there’s money waiting for you!