Old Account - What Am I Missing Here?

[CarbonSteel]

Back in 2003, I financed a Chevy Tahoe with a Texas based credit union and to start the account (basically to register with the CU), you have to open an account and deposit at least $5.00. I did that and subsequently paid the Tahoe off years ago and later financed a 2010 Kawasaki Brute Force with them in 2011. It was paid off quite some time ago as well. I have not added any more money into the account, but receive an electronic statement monthly always showing the $5.00 balance.

Last week, I receive a letter stating that due to inactivity they are going to close the account (no argument there--I have not used it in more than 5 years). But, if I do not contact them to tell them to send me the $5.00, they are going to send the money to the "unclaimed money account" at the state and the state will then use it how they wish. What I do not understand is clearly they know how to contact me and they know that I am logging into the account periodically, so why not simply send the $5.00 and close the account?

The money is clearly mine, so what am I missing here?

 

[MrMoody]

Compliance with labyrinthine banking laws.

 

[Kruse]

Originally Posted by MrMoody
Compliance with labyrinthine banking laws.


Yep. Inactivity of your account (I think it's one year) will have it closed (by law) and the funds will be sent to the state. You then have to contact the state to retrieve your funds. If it's over a certain amount, the state of Texas will take 10 % of it.
How do I know this? i had an inactive savings account from Texas that I had to retrieve a couple of years ago.

 

[NormanBuntz]

Would it have been a problem to keep a $100 balance in the account? After all, credit unions pay higher interest rates than most banks. I've been a member of an Atlanta credit union for 37 years, and I get terrific service.

 

[Hall]

Originally Posted by 2015_PSD
Last week, I receive a letter stating that due to inactivity they are going to close the account (no argument there--I have not used it in more than 5 years). But, if I do not contact them to tell them to send me the $5.00, they are going to send the money to the "unclaimed money account" at the state and the state will then use it how they wish.

Yes, they have an address but how do they know you are still there ? We get mail addressed to previous homeowners all the time and it's not returned to them so for all they know, those people still live there. In your case, confirm with the bank where to send the money. That's not so difficult, is it ? Now, let's presume you don't live at the address they have on record and the current person thinks they'll get some money.... They won't be able to cash a check made out to you.

 

[PimTac]

They want to make sure it's you. Yes it's only $5 but it could be much more and the CU wants a clear record of who got the money.