The Impact of COVID-19 on Unclaimed Property Volumes Across the US

The COVID-19 pandemic reshaped our world in countless ways, from how we work to how we interact with our communities. But one of the most surprising—and often overlooked—financial consequences of the pandemic has been the dramatic surge in unclaimed property across the United States. If you haven't checked for missing money recently, the statistics from the past few years might convince you it's time to take a look.

In 2022 alone, an astonishing $3 billion in unclaimed property lay dormant across the United States, and today, roughly one in seven Americans has unclaimed property waiting for them. But why did the pandemic cause such a massive spike in these forgotten funds? Let's explore the impact of COVID-19 on unclaimed property volumes and what it means for your wallet.

What is Unclaimed Property?

Before diving into the pandemic's impact, it's helpful to understand what unclaimed property actually is. Unclaimed property refers to any financial asset that has been left inactive by its owner for a specific period, known as the dormancy period (typically three to five years, depending on the state).

Common examples include:

• Uncashed payroll checks
• Forgotten bank accounts
• Unused gift cards or store credit
• Insurance payouts or premium refunds
• Utility deposits
• Stock dividends

When a business cannot locate the rightful owner after the dormancy period, state laws require them to turn the funds over to the state's treasury or unclaimed property program. The state then holds the money in safekeeping until the owner claims it.

How the Pandemic Fueled the Surge in Unclaimed Money

The chaos and disruption of the COVID-19 pandemic created a perfect storm for financial assets to slip through the cracks. Here are the primary drivers behind the recent surge in unclaimed property volumes:

1. The Great Relocation

During the pandemic, millions of Americans relocated. Some moved out of crowded cities to suburbs or rural areas, while others moved in with family members to weather the economic uncertainty. This mass migration meant that countless final paychecks, utility deposit refunds, and important financial documents were mailed to old addresses and returned as undeliverable.

2. Pandemic-Era Rebates and Refunds

The pandemic triggered a wave of unexpected refunds. For example, as driving plummeted during the lockdowns of spring 2020, auto insurance companies issued an estimated $14 billion in premium refunds to their customers. Additionally, various consumer rebate checks and canceled event refunds were mailed out. Many of these checks were either sent to the wrong address, mistaken for junk mail, or simply forgotten in the stress of the pandemic, eventually becoming unclaimed property.

3. Job Changes and The Great Resignation

The economic upheaval of 2020, followed by the "Great Resignation," led to unprecedented job turnover. When people change jobs rapidly, they often leave behind small final paychecks or forget to roll over old 401(k) accounts. These abandoned employer-related funds are a major contributor to state unclaimed property vaults.

4. Uncashed Government Relief Checks

While most federal stimulus checks were deposited directly into bank accounts, millions of paper checks were mailed. Some of these checks, along with state-level relief funds, were never cashed. As these checks reach their expiration dates, the funds often transition into the unclaimed property system.

5. Business Closures and Bankruptcies

Sadly, the pandemic forced many businesses to close their doors or file for bankruptcy. When a company liquidates, it must settle its accounts, which often involves sending final payments to vendors, employees, and customers. If those payees cannot be found, the funds are escheated (turned over) to the state.

States Are Cracking Down (and Paying Out)

The surge in unclaimed property hasn't gone unnoticed by state governments. In fact, many states have ramped up their efforts to reunite citizens with their money—and to audit businesses that fail to report it.

The Revenue Factor

During the height of the pandemic, states faced severe budget shortfalls. Unclaimed property programs are a significant source of revenue for state general funds, as states can use the interest (and sometimes the principal, temporarily) of the unclaimed funds until the rightful owner comes forward. This led to an increase in state audits of businesses to ensure they were properly reporting and remitting dormant assets.

Record-Breaking Returns

On a positive note, many state treasurers have reported record-breaking returns of unclaimed property to citizens in the post-pandemic years. For instance, the Washington Department of Revenue recently returned a record $138.9 million in a single year, a massive jump from previous years. Similarly, Pennsylvania reported returning over $135 million in 2021 and more than $211 million in 2022.

These funds have served as a critical economic stimulus for families recovering from the pandemic's financial setbacks.

How to Claim Your Missing Money

With billions of dollars sitting in state treasuries, there is a very real chance that some of it belongs to you, your family, or your business. The process of finding and claiming your money is entirely free and easier than ever.

Here are the steps you should take:

1. Search Your Current State: Start by checking the official unclaimed property website for your current state of residence. Most states participate in the national database MissingMoney.com, which is endorsed by the National Association of Unclaimed Property Administrators (NAUPA).
2. Check Previous States: Because the pandemic caused so many people to move, it is crucial to search the databases of every state you have ever lived in.
3. Search Under Different Names: Check for your maiden name, common misspellings of your name, and the names of deceased relatives (you may be entitled to claim their funds as an heir).
4. Check Federal Databases: Don't forget to check federal sources, such as the IRS for unclaimed tax refunds, or the PBGC for unclaimed pension benefits.

Let the Experts Help

Navigating the various state databases and gathering the necessary documentation to prove your identity can sometimes be time-consuming, especially if you have lived in multiple states or are trying to claim funds on behalf of a deceased relative or a business.

If you want to ensure no stone is left unturned, the team at Recover Unclaimed Money is here to help. Our experts have the tools and experience to conduct comprehensive searches across all jurisdictions and streamline the claims process, ensuring you get back every penny you are owed.

The pandemic may have caused a surge in lost funds, but you don't have to leave your money behind. Take a few minutes today to check for unclaimed property—it might just be the easiest money you ever make.