By Paul Losiewicz, Asset Recovery Manager

Asset Recovery, often called unclaimed property, involves reclaiming financial assets that have gone unclaimed by individuals or organizations. These assets can range from uncashed checks to forgotten stock dividends and insurance payments. By law, companies must remit these unclaimed assets to state or federal agencies if they cannot identify the rightful owner.

The Hidden Challenges of Asset Recovery

Despite its straightforward appearance, Asset Recovery is fraught with challenges. Here are some common misconceptions:

• Clerical Function: Many believe that Asset Recovery is a simple clerical task. In reality, it requires specialized knowledge and dedicated resources to identify, file, and collect claims effectively.
• Government Cooperation: While state agencies aim to return unclaimed property, increased fraud has led to stricter regulations, making the process more cumbersome.
• Geographic Limitations: Unclaimed property isn’t confined to states where a company has a physical presence. Assets can be remitted to various states, making it essential to search across all jurisdictions.
• Effortless Refunds: Filing a claim is just the beginning. Ensuring that the claim is processed and refunded often requires persistent follow-up and additional documentation.

The Complexities of Internal Asset Recovery Efforts

Many organizations attempt to manage Asset Recovery internally, often with mixed results. Here are some common pitfalls:

• Disinterested Junior Staff: Assigning Asset Recovery tasks to temporary or junior staff can lead to incomplete or ineffective efforts.
• Regulatory Variations: Each state has unique rules and processes for unclaimed property, complicating the recovery process.
• Time-Consuming Process: Identifying, filing, and collecting claims can take months, especially with understaffed state agencies.
• Fraud Prevention: Increased fraudulent activity has led to stricter verification requirements, making it harder to reclaim assets without thorough documentation.

Best Practices for Effective Asset Recovery

To maximize your unclaimed property recoveries, consider these best practices:

• Dedicated Resource: Assign a knowledgeable and passionate individual or team to handle Asset Recovery. This task requires expertise and persistence.
• Thorough Searches: Conduct comprehensive searches across all states and jurisdictions, even those where your company doesn’t have a physical presence.
• Regular Monitoring: Implement a regular review process to identify new unclaimed property and track the status of ongoing claims.
• Work with Experts: Consider partnering with firms specializing in Asset Recovery. These experts bring industry knowledge, streamlined processes, and established relationships with state agencies.

Overcoming Challenges and Moving Forward

If you’re new to Asset Recovery or facing difficulties with current efforts, remember that persistence and thoroughness are key. Engage with state agencies, provide detailed documentation, and be prepared for a potentially lengthy process. Despite the challenges, the financial rewards of successful Asset Recovery are well worth the effort.

Conclusion

Unclaimed property recovery is a vital aspect of financial management that requires expertise, dedication, and a strategic approach. By understanding the common pitfalls and implementing best practices, organizations can unlock significant financial assets and improve their bottom line.