(The Center Square) – A federal squabble between Pennsylvania and a number of other states against Delaware may mean almost $20 million for the commonwealth.
A recent Supreme Court case ruling against Delaware means about $400 million in unclaimed property will go to 30 states.
The dispute goes back almost a decade, thanks to Delaware’s refusal to release unclaimed MoneyGram checks purchased in other states. When those checks weren’t collected, the funds would end up in Delaware, where a company was incorporated.
Instead of returning that property to the state where a check was purchased, Delaware kept the unclaimed property and rolled it into its budget. The revenue from those uncollected checks was significant — it accounted for about 10% of Delaware’s state revenue, as The Center Square previously reported.
The Supreme Court, in a unanimous ruling, found Delaware’s defense of the practice unpersuasive.
The Pennsylvania Treasury called the ruling “a landmark unclaimed property case, creating the potential return of nearly $19 million in escheated funds to Pennsylvania from Delaware,” according to a press release.
“Pennsylvania argued that uncashed ‘official checks’ sold by MoneyGram in Pennsylvania are a form of money order,” the Treasury noted. “According to the Federal Disposition Act (FDA), uncashed money orders and similar instruments are to be escheated to the state in which they were originally purchased. Delaware argued that MoneyGram’s ‘official checks’ do not fall into this FDA classification, and are therefore due to the state where the company is incorporated.”
It’s unclear how much, exactly, Pennsylvania will receive; the Supreme Court ruling directed a special master to determine the dollar amount for every state affected.
“This ruling means that Pennsylvania residents will have a real opportunity to reclaim millions of dollars in unclaimed property,” Treasurer Stacy Garrity said. “The Supreme Court rejected Delaware’s attempt to gain an unfair windfall and struck a strong blow in favor of consumers. I’m eager to get to the business of returning this money to the hardworking people it rightfully belongs to.”
The money will add to a large pot of property held in the treasury, which totals more than $4 billion. Pennsylvanians can make a claim on that property through the treasurer’s website.
