A federal judge on Thursday approved a settlement that now requires the state of Illinois to pay interest on unclaimed money it holds to residents who rightfully own and claim it.
Judge Charles Kocoras approved the settlement agreement between the state of Illinois and plaintiffs’ attorneys, who filed the lawsuit five years earlier, to compel the state to pay interest on unclaimed property owned by the state.
Since 1961, the Illinois Treasurer’s Office has been mandated under state law to hold unclaimed money and property such as forgotten stock dividends, rental deposits, abandoned bank accounts, unpaid checks, utility refunds, and more. The Office of Treasurer Mike Frerichs maintains a Fund web site known as the ICash Program, which allows Illinois residents to search by name to see if unclaimed property is owed and how to obtain it Submit funds.
The state’s unclaimed funds currently stand at an estimated $ 3.5 billion – with many Illinois people unaware they owe that money, some now with interest after Thursday’s settlement.
Plaintiffs filed the class action lawsuit in 2016 alleging that the state was violating the US Constitution by owning private property without “fair compensation,” and asking the court to compel the state to pay interest on those funds.
The settlement agreement approved on Thursday says the state will now pay this interest based on the current rate of inflation or the monthly rate of return on the state portfolio, whichever is the greater, minus an administration fee of $ 5, according to Frerich’s office.
Illinois residents do not need to take any action to receive the interest payment. Anyone who has applied for funds from the ICash program since August 22, 2017 and has provided a valid postal address with the treasurer will receive a check in the mail. Everyone who claims their money in the future receives their money including this interest.
Interest begins either on August 22, 2017 or on the day the property is handed over to the Treasury, whichever occurs later. And the interest continues until the tax office pays the claim, a maximum of 10 years.
Representatives from the Frerichs offices and Illinois Attorney General Kwame Raoul, who represented the state in the trial, declined multiple requests for an interview to discuss the settlement and its impact on Illinois residents.
A spokesman for Frerichs – who has repeatedly extolled his office’s publicity work on the ICash program – simply said in a statement that Illinois is now one of four states that pay interest on unclaimed funds.
