Unclaimed Traveler's Checks

Traveler’s checks were historically used as a secure currency alternative for people traveling abroad, offering protection against loss or theft. They were a popular form of payment for tourists, introduced in 1891 when James C. Fargo was unable to cash checks during a trip to Europe, leading Marcellus F. Berry to create a more secure product.

With the rise of credit cards and digital payments, the use of traveler’s checks has declined significantly. Perhaps because of their lack of use, more than $1 billion in unredeemed traveler’s checks are currently circulating because they have not been cashed or used by their owners.

As a result, traveler’s checks form part of the vast category of unclaimed property that has been abandoned or forgotten by their owners. This includes bank accounts, stocks, and uncashed checks.

Understanding unclaimed property

Legal aspects

Unclaimed property laws establish the criteria and processes for handling abandoned properties, ensuring that rightful owners can recover their funds. States have policing powers to ensure businesses report unclaimed property. Controversially, states only expect a small fraction of the unclaimed property they hold to be eventually claimed, often diverting the remainder into general funds or programs.

Read more: How to claim money in each state

The role of the Federal Disposition Act

The Federal Disposition Act governs the handling and escheatment of unclaimed checks, including traveler’s checks. It ensures that unclaimed funds are not left unutilized and provides a framework for their eventual return to the rightful owners.

State entitlement and escheatment process

Individual states are entitled to claim unclaimed funds, such as traveler’s checks, through an escheatment process. This involves businesses turning over unclaimed property to the state, which then holds the funds until they are claimed by their rightful owners. Typically, a dormancy period of three to five years applies before property is turned over.

How to find unclaimed traveler’s checks

To find unclaimed traveler’s checks, begin with digital tools like Moneybot5000, which allows you to perform searches across multiple states in one go.

MoneyBot5000 is designed to help locate unclaimed traveler’s checks by scouring various databases and financial records. It automates the search process by accessing government and financial institution databases, checking for unclaimed property lists, and verifying the user’s information against these records. The bot attempts to match names and details, helping to ensure more accurate results. Once potential matches are identified, it provides instructions on how to claim the checks. This can save users time and effort compared to manual searches, which may increase the likelihood of recovering forgotten funds.

TIP: Begin with the states where you have lived or conducted business.

How to claim unclaimed traveler’s checks

Typically when claiming unclaimed traveler’s checks you will need:

• Identification documents: A government-issued ID.
• Proof of address: Utility bills or bank statements showing your current address.
• Any information related to the traveler’s checks:
  • Serial numbers
  • Purchase receipts

Process of reclaiming funds

Filing a claim: Visit the appropriate state’s unclaimed property website or contact their office directly to file a claim. Fill out the necessary forms and attach the required documentation.

Verification: After submitting your claim, the state or entity responsible for the unclaimed traveler’s checks will verify your information and documentation.

Receiving the funds: Upon successful verification, the unclaimed funds will be issued to you. This could be in the form of a direct deposit, check, or other payment methods depending on the issuer’s procedures.

Potential issues and solutions

• Disputes over ownership: If there is a dispute over the ownership of the traveler’s checks, provide additional documentation or seek legal advice to resolve the situation.
• Insufficient documentation: If you lack sufficient documentation, contact the issuing company directly. They may be able to help confirm details based on your provided information or supply alternative verification methods.

Redemption and replacement

Unused traveler’s checks can be redeemed by presenting them at banks or financial institutions. You can also endorse them for direct deposit into your bank account.

Connect with companies like American Express to exchange or cash your unused traveler’s checks. Their customer service can guide you through the process and inform you of any options available depending on the status and details of your checks.

To report lost or stolen traveler’s checks, immediately contact the issuing company. Due to the unique serial numbers on traveler’s checks, replacements can often be issued once you provide the necessary details and complete the required forms.

Read more: Getting refunds on closed bank accounts