Ohio's unclaimed funds division is holding $4.8 billion from old bank accounts, utility bills, and other sometimes forgotten sources. Claims on that money are up by more than 80% since Republican Senate leaders announced in June that unclaimed funds would be used for a sports and cultural facilities fund with $600 million earmarked for the new Cleveland Browns stadium.
But some of those funds have been there since 1968 and they may never be claimed.
When Shaker Heights resident Sarah Rathke learned the state was going to use unclaimed funds to pay for a new domed Browns stadium in Brook Park, she did some checking to see if she had money in there. Turns out, she did.
“I never worked so hard for $377 in my life," Rathke said.
Rathke said it wasn’t easy to trace back to find all of the paperwork needed to claim her funds. She spent hours doing something that she said the state should already have in its records anyway.
“If the state was capable of figuring out all of the claims ascribed to me and the addresses associated with that, it could probably also figure out that I’m associated with those addresses through voting records or tax records or I pay income taxes. How about those records?" Rathke asked.
Democratic former state lawmaker Jeff Crossman is suing the state, saying it doesn't have the power to take $1.7 billion in unclaimed funds for the sports and cultural facilities fund. And he said he can relate to Rathke's frustration. He recently applied to get some funds owed to him. And he said it’s not as easy as uploading a picture of your driver’s license.
“You have to go back and find data that actually ties to the time period of that claim,” Crossman said. “For example, I sold a house back in 2007 and apparently there were some insurance proceeds related to that house purchase. I had to go online and get a copy of the deed from the county recorder’s office, print it and send it to the state of Ohio to prove that I lived at that address during that period of time.”
Crossman still has $900 in an uncashed cashier’s check that he cannot get.
“The state told me I would have to produce a copy of the original check. Now this is a check that I didn’t even know existed so how would I ever have a copy of the original check?" Crossman asked.
Susie Wagner, Outreach Supervisor for the Division of Unclaimed Funds Department of Commerce, said she hears from people who are in Crossman’s situation and admits cashier’s checks are hard to claim.
“Cashier’s checks operate as cash. So consistent with state and federal laws, the person in possession of the cashier’s check is deemed the owner of those funds and that is not always the person who has reported the cashier’s check to the unclaimed funds as the property owner,” Wagner said. “So, what I’m saying is the information given to us is the person who usually bought the cashier’s check and so it’s up to them and to find out where it’s at.”
Wagner said it can also be complicated for heirs of estates to claim unclaimed funds.
“For all of those deceased owner claims, you will need to prove the rightful heir who is entitled to the property. And it is complex. Each one is different and it really depends on each situation,” Wagner said.
And in some cases, Wagner said it requires the heirs to open up a probate claim to process the unclaimed funds – something that might not be financially feasible. Ohio law sets the rules for how claimants can access their funds, in ORC 169 and ORC 1610:10. Wagner said the division has improved its website and is willing to work with people who are having difficulty getting their funds. Wagner said people who don’t want to put sensitive documents on it can take them in person to the division’s Columbus office.
Sen. Casey Weinstein (D-Hudson) said he’s been looking into the issue and posting about unclaimed funds on social media.
“I’ve been shocked at the stories that have come back about how difficult it can be to get these funds out," Weinstein said.
Weinstein is sponsoring a bill that would require the Bureau of Motor Vehicles to check IDs for unclaimed funds when processing license or tag renewals and give people information about how to get their money. It does not deal with simplifying the process. But Weinstein said he’s looking into that too.
“We are already looking at what other states are doing. Pennsylvania is one that may require less process, make it less burdensome for people and make it a streamlined easier process for them to claim those funds," Weinstein said.
Crossman and Democratic former attorney general Marc Dann filed the lawsuit over unclaimed funds a week after the new two-year, $60 billion budget was signed. The difficulty of some Ohioans to claim their funds is part of that lawsuit.
Senate Finance Chair Jerry Cirino (R-Kirtland) said he's confident the state's authority to take ownership of the $1.7 billion in unclaimed funds—known as escheatment—will stand up in court. And he added between $200 million and $300 million in unclaimed funds are turned over to the state each year.
