The federal government has quietly seized $24 million from 189,000 dormant Canadian Bank accounts
It is the biggest amount Ottawa has ever confiscated from bank accounts-all of them dormant for 20 years or more-thanks to new legislation that was passed without fanfare back in April 1997.
In the past, the federal government has only been able to seize accounts containing less than $100 that has been dormant for 20 years or more.
The new legislation raised that amount to $500.
"This is one of the sweetest deals the federal government has ever made and it went unchecked", said Edward Palonek, founder of foundmoney.com, a website that helps people track their lost and forgotten bank accounts.
The Bank of Canada has over $150 million in forgotten money.
Palonek, who has helped thousands of people reclaim their money through millions of dormant accounts listed in foundmoney.com's database.
"What the government did was exploit money out of people who didn't even realize there was money which was owed to them," said Palonek.
In Canada, two years after a customer stops using an account, banks are required to send a notice warning that the account is now considered inactive. If the account is still inactive after five years, banks are required to send the same notice, providing they can locate the account holder.
After 10 years, a list of dormant accounts is published and if the banks still don't hear from the account holder, the money is then transferred to the Bank of Canada.
Credit Unions and Trust Companies are not required to transfer the money to the Bank of Canada-they simply hold on to the money until someone claims it.
The Bank of Canada then holds on to the dormant accounts for another 10 years. If no one comes forward to claim the money during that time, the funds must be handed over to Ottawa and the records destroyed.
Edward Palonek said that it's not uncommon for people to leave money behind-sometimes a good deal of it-believing they cloned out the account before moving or switching to a new bank. Visit Foundmoney.com - you may be richer than you think.
It is the biggest amount Ottawa has ever confiscated from bank accounts-all of them dormant for 20 years or more-thanks to new legislation that was passed without fanfare back in April 1997.
In the past, the federal government has only been able to seize accounts containing less than $100 that has been dormant for 20 years or more.
The new legislation raised that amount to $500.
"This is one of the sweetest deals the federal government has ever made and it went unchecked", said Edward Palonek, founder of foundmoney.com, a website that helps people track their lost and forgotten bank accounts.
The Bank of Canada has over $150 million in forgotten money.
Palonek, who has helped thousands of people reclaim their money through millions of dormant accounts listed in foundmoney.com's database.
"What the government did was exploit money out of people who didn't even realize there was money which was owed to them," said Palonek.
In Canada, two years after a customer stops using an account, banks are required to send a notice warning that the account is now considered inactive. If the account is still inactive after five years, banks are required to send the same notice, providing they can locate the account holder.
After 10 years, a list of dormant accounts is published and if the banks still don't hear from the account holder, the money is then transferred to the Bank of Canada.
Credit Unions and Trust Companies are not required to transfer the money to the Bank of Canada-they simply hold on to the money until someone claims it.
The Bank of Canada then holds on to the dormant accounts for another 10 years. If no one comes forward to claim the money during that time, the funds must be handed over to Ottawa and the records destroyed.
Edward Palonek said that it's not uncommon for people to leave money behind-sometimes a good deal of it-believing they cloned out the account before moving or switching to a new bank. Visit Foundmoney.com - you may be richer than you think.
