Nessel: Michigan Residents to Reclaim $9 Million in Unclaimed MoneyGram Funds

Photo byOffices of Attorney General of Michigan Dana Nessel

A Major Win for Michiganders in Multistate Legal Battle

In a significant legal victory, Michigan Attorney General Dana Nessel announced that a bipartisan coalition of 30 states, including Michigan, has secured a $9 million settlement in a multistate lawsuit against MoneyGram International, Inc. This settlement aims to address the improper reporting and remitting of unclaimed property by MoneyGram, which affected thousands of residents across the state.

Audit Uncovers Misreporting Practices by MoneyGram

The lawsuit followed a detailed audit of MoneyGram's practices, revealing that between 2011 and 2017, the company had incorrectly reported and remitted the value of unclaimed checks to the State of Delaware rather than the states where the money orders were originally purchased. This practice directly violated federal law, which mandates that money orders and other similar instruments must be escheated—or transferred to the state where they were purchased.

In February 2023, the U.S. Supreme Court ruled in favor of Michigan and the coalition of states, affirming the rights of the plaintiff states to the unclaimed property belonging to their residents. The ruling and subsequent settlement underscore the importance of adhering to federal escheatment laws designed to protect consumers and ensure unclaimed funds are returned to the rightful owners.

Attorney General Nessel: “A Resolution That Prioritizes Michiganders”

“After a longstanding dispute, Michigan residents will finally have a real opportunity to claim their uncashed MoneyGram checks,” said Attorney General Nessel. “I’m glad we were able to reach a resolution that prioritizes Michiganders and ensures they can receive what is rightfully theirs.”

The resolution not only marks the end of a prolonged legal battle but also sets a precedent for how unclaimed financial properties are managed in multistate contexts. The funds will now be returned to the residents of the respective states, correcting the misallocations that occurred due to MoneyGram’s previous practices.

How Michigan Residents Can Claim Their Unclaimed Money

Under the settlement, the State of Delaware, which currently holds the unclaimed funds due to MoneyGram’s erroneous reporting, will begin issuing checks to the State of Michigan in the coming weeks. Following receipt of these funds, the State of Michigan will distribute payments to verified claimants.

Residents of Michigan who believe they may have unclaimed property held by MoneyGram are encouraged to check their eligibility and file a claim through the Michigan Department of Treasury’s website. This is a crucial step in ensuring that all eligible Michiganders can reclaim their unclaimed funds swiftly and efficiently.

Settlement Reflects Broader Effort to Protect Consumers

This settlement is part of a broader effort by states to ensure that companies comply with federal escheatment laws and that consumers are not disadvantaged by improper business practices. The proactive stance taken by Michigan and the coalition of states highlights a commitment to protecting the financial rights of their residents and holding corporations accountable for mismanagement of unclaimed property.

The $9 million settlement not only provides financial relief to affected residents but also sends a strong message to other financial service providers about the importance of compliance with escheatment laws.