Pennsylvania has secured a significant victory in the realm of unclaimed property, recovering over $20 million following a landmark Supreme Court decision. This substantial sum is the result of a settlement that concludes a long-standing unclaimed property case, initially championed by Pennsylvania and ultimately decided in its favor by the U.S. Supreme Court in February 2023. This case sets a crucial precedent for how unclaimed funds from financial products like money orders and official checks are handled across the nation.
“This is a huge win for Pennsylvania consumers, and the right standard has been set for the future. The U.S. Supreme Court agreed with us that these checks should be returned to the states where they were purchased, and this settlement is the first step in getting that money back into the right hands.” – Pennsylvania State Treasurer Stacy Garrity
The Supreme Court’s unanimous ruling in Delaware v. Pennsylvania et al. affirmed Pennsylvania’s argument that uncashed “official checks” from MoneyGram Payment Systems, Inc., should be treated as unclaimed property of the states where they were purchased, not Delaware, where MoneyGram was incorporated. This decision is particularly impactful as it clarifies the application of the Federal Disposition Act (FDA) to modern financial instruments. The FDA dictates that unclaimed money orders and similar financial instruments should be returned to the state where they were originally purchased. Pennsylvania successfully argued that MoneyGram official checks fall under this category.
Image: Pennsylvania State Treasurer Stacy Garrity addresses the media, highlighting the successful recovery of unclaimed property funds for Pennsylvania residents.
The settlement encompasses $6,256,096 already remitted by MoneyGram to the Pennsylvania Treasury in April 2024, covering recent report years, alongside an additional approximately $14 million approved as part of the settlement, dating back to 2011. This victory concludes nearly eight years of litigation, a process Treasurer Garrity noted could have been avoided had Delaware been willing to resolve the dispute earlier.
“This settlement concludes nearly eight years of litigation – and it’s a lawsuit that Pennsylvania should never have been compelled to initiate. The good news is that Pennsylvanians who did business with MoneyGram will have a real chance to be reunited with their money – as will people in every state where MoneyGram sells its products. Delaware’s refusal to amicably resolve this dispute when it was first raised in 2014 will result in the payment of over $190 million to the litigant states.” – Pennsylvania State Treasurer Stacy Garrity
Are You Owed Unclaimed Money from the MoneyGram Settlement?
If you purchased a MoneyGram official check in Pennsylvania since January 1, 2011, and it was never cashed, you might be entitled to claim your money. The Pennsylvania Treasury Department is urging individuals who believe they may be eligible to come forward and file a claim.
To initiate a claim, it’s essential to provide evidence of purchase. Due to the limited information available from MoneyGram’s records, the most effective evidence would be a receipt. This receipt should ideally show the amount of the official check, the location where it was purchased, and the date of purchase.
Image: A close-up view of a sample receipt, illustrating the type of documentation beneficial for individuals seeking to claim unclaimed funds from the MoneyGram settlement.
For detailed information on how to file a claim and to access the necessary contact information, please visit the Pennsylvania Treasury Department’s dedicated unclaimed property website: patreasury.gov/unclaimed-property.
A Significant Precedent for Unclaimed Property Law
This Supreme Court decision marks the first significant ruling on unclaimed property law by the highest court in nearly three decades. The case originated in 2016 and navigated through various legal stages, including a favorable ruling for Pennsylvania by Special Master Judge Pierre N. Leval in May 2021, before reaching the Supreme Court. Oral arguments were presented in October 2022, culminating in the unanimous Supreme Court victory for Pennsylvania in February 2023.
Pennsylvania’s Treasury Department, under the leadership of Treasurer Garrity, played a central role in this legal battle. Notably, Pennsylvania was the only state directly represented by its unclaimed property administrator throughout the entire process. Chief Counsel Christopher B. Craig, along with Joshua J. Voss of Kleinbard LLC, provided legal representation for the Pennsylvania Treasury.
This victory not only secures millions in unclaimed money for Pennsylvania residents but also establishes a vital legal precedent ensuring that unclaimed funds are returned to the correct states, benefiting consumers nationwide. If you believe you may have unclaimed money from a MoneyGram official check, now is the time to take action and file your claim.
