I'm trying to resolve a dispute between our operations center and an unhappy customer.
Under Dispostion of Abandoned & Unclaimed Property, Section 1301.3 - a matured time deposit is included in the type of accounts that must be escheated after 5 years of no activity. Would an automatically renewable CD ever be considered as a matured time deposit under this law - since the maturity date advances on the date it would have matured?
I'd appreciate any insight you could provide!

Please look at your Disposition of Abandoned and Unclaimed Property at Article XIIII.1 section 1301.3 as PA defines it in their Unclaimed Property Law. See if your scenario fits the definition. You call always call the 1-800-379-3999 for an answer.

We take the first maturity date and add five years to find the escheat date. If there has been contact with the customer that's fine. If not, we start writting our letters to let the customer know about the escheat time. Management never want to escheat a CD but if the customer is "lost" we don't have a choice.

Thank you to anonymous for the phone number. This question also came up today at my bank. I attended the PA Treasury Dept seminar last year and asked this question, but since it came up again I also called them today to confirm the answer. They said the five year clock starts ticking on the first maturity date for automatically renewable CDs if there is no customer contact. Their logic is that the CD can be rolling indefinitely if the customer is not actually receiving the renewal notices. They also indicated that even if the interest is being deposited to another account at the bank, we must still contact the customer to verify that they are aware that the CD is here. However, if the customer has other accounts, you can call them and document the phone call rather than get something signed, if you prefer. Hope this helps. While it makes sense to me, it is definitely an operational nightmare.

Your welcome.....I did have our auditor approve, that if the customer has activity on another account relationship, it would update the last contact date on our files for any escheatable account. It is a maintenanced field on our files, which I place the date I am checking for the relationship. It may be another way to counter the escheat CD. Only a suggestion...