COMPLIANCE007 - Dormant accounts and returns

Dormant Accounts and Returns

When money is deposited into an XTRM  company or personal wallet, it is identical to being deposited into a bank account, i.e., the funds now belong to the beneficiary. We notify the beneficiary of payment using the contact information provided by that company or individual. XTRM holds monies in many global banks accounts on behalf of our customers and partners, and we are financially regulated in the same way traditional banks are regulated. 

Monies in a wallet typically cannot be returned to the remitter as they do not belong to the remitter (or XTRM). However, exceptions may apply when a clear and obvious error has occurred, and there is no unresolved dispute. 

Having an XTRM account go dormant, like all financial organizations, happens occasionally. Nobody wants to see the recipients ' money disappear, whatever the reason for an account to fall dormant. Therefore, while the money still belongs to the customer, XTRM is required to hand it over to the State after a certain period of time. This is known as escheating an account. 

How long before this happens?

Generally, a time frame of three to five years with no customer-initiated activity sends an account into dormancy. However, the amount of time that must lapse depends on the state in which the account was opened.

Do you try to notify the account holder?

Yes, of course. Before sending the account to the state, we try to notify the account holder. If the customer does not respond within a certain amount of time, the balance on the account will be turned over to the state.

What happens if the account holder does not respond?

In a process known as “escheating” an account, we must turn over funds from the dormant account to the state treasury. Once the account is sent to the state, the funds are held as unclaimed property. For the account holder to reclaim the money, they will have to contact your state for instructions on how to get their money back. They must complete and submit a claim form along with the necessary identification. They can visit www.unclaimed.org to initiate the process.

How can account holders avoid having their accounts go dormant?

1. Keep your contact information updated: Ensure that your XTRM account has up-to-date contact details, including email, phone number, and address. This ensures you receive any notifications before your account is escheated to the state. Know that reclaiming funds from the state could take months or even years. 
2. Review your XTRM account regularly: Regularly check your account for any funds and consider transferring them if needed to avoid the risk of dormancy.
3. Create activity on your account: Log in periodically and make transfers or payments. Regular activity prevents your account from becoming dormant.

What to do if you need assistance

If you have any concerns about your account becoming dormant or reclaiming funds that have been escheated, please contact our customer support team at support@xtrm.com for guidance.