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Misplaced Millions: Unclaimed
Bank Deposits Total $286 Million in Canada
Ottawa, Ontario July 5, 2001 -- Over the
past 55 years, some 2,342,848 bank deposits in Canada worth over $286 million
have become unclaimed. Only 4% of these deposits have been recovered
by their owners.
In Canada, any bank deposit that has not
had activity for over 10 years is declared unclaimed under the Bank Act.
This includes savings accounts, bank drafts, certified cheques, money order
and travelers cheques. Unclaimed deposits are transferred to the
Bank of Canada, which acts as a custodian until the owner returns to claim
the money.
Unfortunately, very little is done to find
the owners of unclaimed deposits by either the chartered banks or the Bank
of Canada. Perhaps this is not all that surprising considering how
the banks and government benefit from the deposits. The banks collect
10 years of service fees (some also charge “inactivity” fees), the federal
government claims all deposits under $500 after 10 years (worth $60 million
to date) and both benefit from the interest earned.
A company called Canadian Unclaimed Asset
Recovery (C.U.A.R) was recently created to help reunite Canadians with
their unclaimed money and fill the gap left by the banks and government.
It is believed to be the first attempt in Canada by anyone (government
or industry) to actively seek out owners of unclaimed money.
“Computer database technology is what makes
this all possible,” says the founder of C.U.A.R. Suspected
owners are identified then sent letters informing them of the money.
C.U.A.R also offers services to recover unclaimed money for a fee.
In addition to its locating services, C.U.A.R
operates a free web site, www.cuar.ca, where Canadians can themselves search
for unclaimed money. The site provides a wealth of information on
unclaimed money in Canada.
Often money becomes lost or forgotten due
to moving or a death. According to Statistics Canada, almost half
the population of Canada moves each year! This is one of the highest
rates in the world. In the event of a death, the executor of the
will and the relatives left behind either do not know the account exists
or cannot locate it.
To prevent your bank deposits from becoming
unclaimed C.U.A.R has two recommendations. First, ensure your financial
institutions have your current address. If an account has not been
used in over two years, the bank will contact you. Second, keep a
list of all your bank accounts with your will or other estate records,
so your heirs know where your accounts are located.
Canadian Unclaimed Money Facts:
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In 2000 114,358 deposits became unclaimed
worth $23,562,800.31.
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In 2000 8,375 deposits where recovered by
Canadians worth $7,255,324.62From 1945 to 2000 a total of 2,342,848 deposits
have become unclaimed worth $286,185,295.38
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From 1945 to 2000 a total of 103,189 deposits
have been recovered by Canadians worth $60,728,000.42
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From December 1955 to December 2000 a total
of 1,642,505 deposits have been transferred to the Receiver General of
Canada worth $59,255,269.28
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The single largest unclaimed deposit is worth
$423,598.60 and the oldest is from 1900
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Canadian Unclaimed Asset Recovery is a
company that reunites Canadians with their lost money. It locates
suspected owners of unclaimed money, offers recovery services, and operates
www.cuar.ca, a web site where Canadians can search for unclaimed money
owed to them.
Copyright © 2001 Canadian Unclaimed
Asset Recovery
Article Usage Terms:
This article may be published on the web
without permission under the following conditions: it must not be
altered or edited in any way, Canadian Unclaimed Asset Recovery must be properly credited as the author, and you must provide a link
back to www.cuar.ca. If you would
like to modify this article for use in a print publication please contact us
for permission.
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