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Senate Co-Sponsorship Memoranda
Senate of Pennsylvania
Session of 2015 - 2016
Regular Session
MEMORANDUM
| Posted: | July 7, 2015 11:58 AM |
|---|---|
| From: | Senator Andrew E. Dinniman |
| To: | All Senate members |
| Subject: | Customer Account Notification Act |
| A number of my constituents who have a Certificate of Deposit (CD) discovered, based on Article XIII.1 of the Fiscal Code, that their banks must, after three years and with proper notification, turn their CDs over to the State Treasury as "abandoned property". The problem is when you receive a CD renewal, the bank tells you that if you do not take any action your deposit will be automatically renewed. However, if you do not make contact with the bank in a three year period of time, based on the Fiscal Code, the bank is obligated to notify you and send the CD to the state as abandoned property. A number of my constituents have reported they did not receive notice because they were away or had moved. Thus, they failed to make contact with the bank and then had to engage in a lengthy process with the State Treasurer's office to get their own money back. I will soon introduce a bill that would require financial institutions to provide notice to customers at the time of purchase, or not later than five days after purchase and at each renewal notice, of the three year provision the Fiscal Code. The law would also apply to traveler's checks and money orders. Please join me in cosponsoring this legislation to protect the assets of all Pennsylvanians. |
Introduced as SB960