Michigan Attorney General Dana Nessel announced a bipartisan coalition of 30 states has agreed to resolve a multistate lawsuit regarding unclaimed MoneyGram International Inc. (MoneyGram) property. The settlement will result in an approximately $9 million recovery for residents of the State of Michigan with outstanding unclaimed property transferred and held by MoneyGram money order service.
A multistate audit of MoneyGram revealed that the company had been incorrectly reporting and remitting the value of unclaimed checks to the State of Delaware from 2011 to 2017, rather than to the states where the money order was purchased. This practice violated federal law, which requires money orders and other similar written instruments to be escheated to the state in which they were purchased. The U.S. Supreme Court ruled in favor of Michigan and the coalition of states in February 2023, affirming the plaintiff states’ rights to unclaimed property belonging to their residents.
“After a longstanding dispute, Michigan residents will finally have a real opportunity to claim their uncashed MoneyGram checks,” Nessel said. “I’m glad we were able to reach a resolution that prioritizes Michiganders and ensures they can receive what is rightfully theirs.”
The settlement will allow the State of Michigan to return millions of dollars to residents. The State of Delaware, which currently holds the funds due to MoneyGram’s erroneous reporting and remitting, will begin issuing checks to the State of Michigan in the coming weeks. The State of Michigan will then remit payment to verified claimants of the unclaimed checks. Residents can check for any unclaimed property they may be eligible to claim, and file such a claim, on the Michigan Department of Treasury’s website at https://unclaimedproperty.michigan.gov.
A multistate audit of MoneyGram revealed that the company had been incorrectly reporting and remitting the value of unclaimed checks to the State of Delaware from 2011 to 2017, rather than to the states where the money order was purchased. This practice violated federal law, which requires money orders and other similar written instruments to be escheated to the state in which they were purchased. The U.S. Supreme Court ruled in favor of Michigan and the coalition of states in February 2023, affirming the plaintiff states’ rights to unclaimed property belonging to their residents.
“After a longstanding dispute, Michigan residents will finally have a real opportunity to claim their uncashed MoneyGram checks,” Nessel said. “I’m glad we were able to reach a resolution that prioritizes Michiganders and ensures they can receive what is rightfully theirs.”
The settlement will allow the State of Michigan to return millions of dollars to residents. The State of Delaware, which currently holds the funds due to MoneyGram’s erroneous reporting and remitting, will begin issuing checks to the State of Michigan in the coming weeks. The State of Michigan will then remit payment to verified claimants of the unclaimed checks. Residents can check for any unclaimed property they may be eligible to claim, and file such a claim, on the Michigan Department of Treasury’s website at https://unclaimedproperty.michigan.gov.
