© Affiliated Computer Services, Inc. (ACS) 2007, 2008

Due DiligenceJames SadikAffiliated Computer Services

© Affiliated Computer Services, Inc. (ACS) 2007Slide 2

Topics

● What is Due Diligence? ● Maine’s Current Statute ● Common Due Diligence Requirements ● What Should be Included in a Due Diligence Letter? ● Why Due Diligence Doesn’t Always Work ● Effective Outreach Tools ● Benefits to Holders

© Affiliated Computer Services, Inc. (ACS) 2007Slide 3

What is Due Diligence?

“The degree of effort required by statute that a holder of abandoned property must use to locate the rightful owner of property before the property is remitted to the state.”

© Affiliated Computer Services, Inc. (ACS) 2007Slide 4

Maine’s Current Statute

The holder of property presumed abandoned shall send written notice to the apparent owner, not more than 120 days or less than 60 days before filing the report, stating that the holder is in possession of property subject to the Act, if:

The holder has in its records an address for the apparent owner that the holder’s records do not disclose to be inaccurate

The claim of the apparent owner is not barred by a statute of limitations

The value of the property is $50.00 or more

© Affiliated Computer Services, Inc. (ACS) 2007Slide 5

Common Due Diligence Requirements

● Mail a letter by first class mail to the last known address of the owner of the property having a value of $50.00 or more

● Certified Mailing exceptions (in limited number of states)

● Allow appropriate time for owner to respond

NOTE: accounts where address is known to be incorrect (undeliverable) typically do not require a due diligence mailing

© Affiliated Computer Services, Inc. (ACS) 2007Slide 6

What Should be Included in a Due Diligence Letter

● As much information regarding the liability as possible, such as:

Date of transaction Check amount Check date Invoice number

● Clear Instruction regarding how to reclaim the property ● Clear guidance regarding the remittance of property to

the State in the absence of a response

© Affiliated Computer Services, Inc. (ACS) 2007Slide 7

Why Due Diligence Letters Fail to Prompt Responses

● Mailed to an outdated contact ● Mailed to a bad address (due diligence letter is

returned) ● Company cannot verify its right to property and ignores

mailing (or doesn’t know how to account for it) ● Mailing never gets opened or is thrown out

© Affiliated Computer Services, Inc. (ACS) 2007Slide 8

Effective Outreach Tools (pre due diligence) For Holders

● Credit bureau databases ● Payroll & other benefits record keeping systems ● Phone books or online directories ● Internet searches ● Business records and correspondence ● Current customer records

© Affiliated Computer Services, Inc. (ACS) 2007Slide 9

Benefits to the Holder

● Reunites the owner with his/her property prior to reporting it as abandoned

● Reinstates the account ● Maintains a client base ● Provides customer service ● Reduces the number of accounts reported as unclaimed

property

© Affiliated Computer Services, Inc. (ACS) 2007Slide 10

Questions?