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Inactive bank accounts seized by US government

Asked Dec 4, 2009, 07:29 AM — 5 Answers
I had 50.00 in a bank account and due to illness and mental lapse I forgot about the account. When I remembered I had the account I checked with the bank and was told it had been closed as the Government had seized the money due to lack of activity. Any way to get the money back?

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tickle's Avatar
tickle Posts: 19,611, Reputation: 12451
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#2

Dec 4, 2009, 08:04 AM
I haven't heard of the government seizing a bank account because of inactivity. Why would they bother with $50. Unless you had a judgment against you at some period in time and it was taken for taxes owed.

Tick
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JudyKayTee's Avatar
JudyKayTee Posts: 46,145, Reputation: 23845
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#3

Dec 4, 2009, 08:04 AM
What State and how long was the account inactive?
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JudyKayTee's Avatar
JudyKayTee Posts: 46,145, Reputation: 23845
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#4

Dec 4, 2009, 08:06 AM
Quote:
Originally Posted by tickle View Post
I haven't heard of the government seizing a bank account because of inactivity. Why would they bother with $50. Unless you had a judgment against you at some period in time and it was taken for taxes owed.

Tick


This is, in fact, somewhat common in NY. Searching for these "lost accounts" is big business. The Government - in this case - is the State, not the Feds.

It also depends on the type of account. I've seen banks continue to withdrawn service charges/fees on cold accounts until the balance is gone.
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joleenthegirl Posts: 1, Reputation: 1
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#5

Jul 13, 2012, 02:04 PM
Hello people. YES, the gov't CAN and DOES seize "dormant" bank accounts...WITHOUT notice to you. Doesn't matter - $5 or $500,000. And they have really become aggressive about it. This is what I was told by two major banks yesterday. For money market accounts, and for savings accounts, the time period for 'inactivity' is 12 months.
For checking accounts it is from 3 to 6 months of inactivity. YOU MUST call your banks or better yet, go visit. Arrange for automatic transfers, or deposit a dollar or withdraw a dollar every month or two....just make sure there is activity. AND...the banks ARE NOT REQUIRED to notify you, folks! I almost lost my entire life savings yesterday. Just by chance I stopped into the bank after a year of traveling...I had 30 days left until they turned my life savings over to the Gov't. BE AWARE and BEWARE!!!
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JudyKayTee's Avatar
JudyKayTee Posts: 46,145, Reputation: 23845
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#6

Jul 13, 2012, 02:07 PM
Depending upon the State the funds are held in a special fund for a period of time - seizing them doesn't mean they are gone forever.

This is a question from 2009.
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