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 to us 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 from time to time. Nobody wants to see the recipients ' money disappear, whatever the reason may be 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.
In a process known as “escheating” an account, we are required to 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 will need to complete and submit a claim form along with the necessary identification. They can visit www.unclaimed.org to initiate the process.
How do account holders avoid letting their accounts go dormant?
- Keep their address and contact information updated on their XTRM account. If they keep your contact information, email, mobile number and address up-to-date, they will be less likely to miss the final notification before an account is turned over to the state. If they allow the state to escheat an account, reclaim their funds could take months or even years.
- Review their XTRM account regularly. Doing this can identify which wallets have funds and move funds to another account to make it less of a worry.
- Create account activity by logging in, making transfers and payments. By logging in and making transactions, keeping your account active should not be a problem.