How can the bank claim my money to be inactive (unclaimed) and donate it to the government????!!!!!!?

Question

I have some extra money set aside that I never touch.
It's basically there only for emergencies.
Today I received a letter from the bank stating that there has been no activity on my account for 5 years and that if I don't check into my account or do something else to generate activity on my account they would consider it inactive and unclaimed for and would donate all the money in my account to the government based on some law regarding "unclaimed property"!!!!!

Needless to say tomorrow I'm going to generate a lot of activity by withdrawing the whole amount and depositing it with a bank that does not entertain the idea of donating their client's money to uncle Sam.

If such a law is in the book, I'm sure someone has lost their money before this way. I'm trying to find a news article right now of someone/ corporation that this has happened to before.

The account is located in Arizona, USA.
Do all States have this law? Or is this something specific to Arizona?

Answer 1

They didn't just decide to do this on their own. You'll find that other banks operate under the same law. But if it is turned over to the state as unclaimed property, you can still get it back, but you have to get it from the state rather than from the bank.

They aren't "donating" your money. And it isn't Uncle Sam (the feds) by the way, it's the state.

Answer 2

Banks and other business are required to send money that is unclaimed (i.e. un-cashed checks, bank accounts, contents of safe deposit boxes) to the state. They will try to contact the rightful owner of the property and return it to them.

I had a paycheck which I lost and never had replaced that was returned to me about 6 years later.