Blue shield of california unclaimed property department

Just for giggles, Paul Hegness entered his name into the California state controller’s online database for unclaimed property, where more than 48 million items worth $9.3 billion await their rightful owners.

“What a surprise!” said Hegness of Newport Beach, delighted to discover $83 from an insurance company he did business with years ago.

Delighted, that is, until he tried to claim that money. He spent 15 minutes filling out an online form, then got a response saying his claim could not be made electronically. He’d have to fill out a hard copy, take it to a notary public to be notarized and then send it to the controller via snail-mail.

“Bottom line, as is always the case with the state of California, they prescribe a system that’s so difficult and so much trouble that people don’t really pursue these claims unless there’s some significant amount of money involved,” he said.

“Why should I be surprised that the state of California really isn’t interested in helping me recover my money? As is always the case with this state, their real interest is in keeping my money.”

After publishing an article about the unclaimed property, the Southern California News Group heard from many people who encountered hiccups while trying to claim their stuff — including a woman whose inquiry was hijacked by a third party trying to capitalize on her quest.

“Did I miss the part where you have to pay $44.95 to see how much $$$ you are supposedly getting back?” Sheree Lawsen asked this news group by email. Turns out she called an 888 phone number  — not the controller’s 800 number — and was assured she’d be “quite thrilled” to learn how much awaited her, but she must pony up first.

“Why would I have to pay to get my own money?” Lawsen asked. “I’m pretty sure this is a scam.”

Claims 101

Warning, folks: It’s not wise to pay for information that is free! Search the database yourself at claimit.ca.gov, or call the Controller’s Office during business hours at 800-992-4647.

There’s an entire business model of “heir finders” who offer to file property claims for customers in exchange for fee. California law allows that — but the fee cannot be more than 10 percent of the property’s value, said Taryn Kinney, a spokeswoman for Controller Betty T. Yee.

“People can just come to the website and search and download the data free of charge,” Kinney said.

Notarization and snail mail are required only if the total value of the claim is $1,000 or greater, the claim is for safe deposit box contents, or the claim is for securities.

And the controller isn’t trying to separate folks from their money so the state can gobble it up, she said.

Unlike other states, which absorb unclaimed property after a certain number of years, California “safeguards lost property as long as it takes to reunite it with the rightful owners,” Kinney said. “There is no time limit or deadline for submitting a claim — it can be claimed and returned at any time dollar for dollar,” she said.

The Controller’s Office has returned more than 1.2 million properties to owners through its electronic claim system, resulting in a huge increase in the number of claims paid annually with no paperwork required, she said.

More than 70 percent of the unclaimed property meets the criteria for quick electronic processing — and, indeed, this reporter’s claim for that $23.19 from the Toyota Motor Credit Corp. processed online in minutes without a hitch — but not every property is simple enough to claim that way, Kinney said.

“The controller’s staff is responsible for verifying identity and ferreting out fraudulent claims,” she said. “Higher-valued property and more complicated claims involving heirs may require proof of ownership, address verification, and/or notarization.”

Meantime, Yee’s office is helping Hegness figure out why his claim didn’t go through online.

California governments: $31 million

For some, an amusing pastime is to plug in the names of the famous, friends and family into the database (we found $3,060.71 belonging to Donald Trump, while Barack Obama has $475.01 and a Google gift certificate valued at less than $100), but Paula Bawden of Lakewood was intrigued with the “business search” option and started fiddling.

She plugged in “State Of California” — and got 3,476 hits.

“Why haven’t state agencies claimed their (really ‘our’) unclaimed property? Has the controller sent out a memo to all agencies and commissions suggesting that they hop to it?” Bawden asked. “The same story goes with various cities and universities that I searched.”

About $31 million belonging to government agencies is in the kitty, Kinney said. And, indeed, the Controller’s Office asks them to hop on it. Annually.

Each year, the controller sends out a letter to state and local governments informing them that they have unclaimed property, and even including a claim form. All they have to do is mail it back. Lately, the office has been making phone calls repeating the message.

Yee is sponsoring Assembly Bill 1637, by Assemblywoman Christy Smith, D-Santa Clarita, that would allow the controller to return property to state and local agencies directly, without filing a claim.

So $31 million may be heading back to state and city coffers soon — but that still leaves the better part of $9 billion sitting there. Get to it, folks.

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