Michigan Attorney General Dana Nessel has announced a settlement involving a bipartisan coalition of 30 states in a multistate lawsuit regarding unclaimed property managed by MoneyGram International, Inc. (MoneyGram). The settlement will lead to an approximately $9 million recovery for Michigan residents with outstanding unclaimed property held by MoneyGram's money order service.
A multistate audit revealed that MoneyGram had been improperly reporting and remitting the value of unclaimed checks to the State of Delaware from 2011 to 2017, instead of the states where the money orders were purchased. This practice was found to violate federal law, which mandates that money orders and similar written instruments be escheated to the state in which they were bought. In February 2023, the U.S. Supreme Court ruled in favor of Michigan and the coalition of states, affirming their rights to unclaimed property belonging to their residents.
“After a longstanding dispute, Michigan residents will finally have a real opportunity to claim their uncashed MoneyGram checks,” Nessel said. “I’m glad we were able to reach a resolution that prioritizes Michiganders and ensures they can receive what is rightfully theirs.”
The settlement enables Michigan to return millions of dollars to its residents. Delaware, which currently holds the funds due to MoneyGram’s erroneous reporting and remitting, will start issuing checks to Michigan in the coming weeks. Subsequently, Michigan will remit payment to verified claimants of the unclaimed checks. Residents can check for any unclaimed property they may be eligible for and file such claims on the Michigan Department of Treasury’s website.
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