Due Diligence Sample Letter (DOC)

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Due Diligence Sample Letter (DOC) Powered By Docstoc
					                                 West Virginia State Treasurer’s
                                  Due Diligence Instructions

Under the West Virginia Uniform Unclaimed Property Act, due diligence letters must be mailed
to owners during the time period from July 1st through September 1st for any property valued
over $50.00. Due Diligence is more than “the law”. Due diligence is good business and good
customer relations”.

You may develop your own Due Diligence letter, or use the sample Due Diligence letter on the
next page as a template. The West Virginia Code of State Rules requires that due diligence
letters contain the following:
      The steps required by the owner to claim the property;
      The steps required by the owner to have the holder reactivate the account and continue to
         maintain the property of the owner;
      A statement that if the owner does not take the steps set forth in the letter, the property
         will be remitted to the state;
      A statement that, the State is only a custodian for property presumed abandoned and
         remitted to the State, and that the owner or his or her heirs do not lose their rights to the
         property and may file a claim for the property with the State;
      A date, not less than fifteen business days prior to the date the holder will remit the
         property to the State, by which the owner must contact the holder, and
      The name, address, and telephone number of the person to contact at the holder.

Suggestions from the State Treasurer’s Office:
    Send a notice to the owner within the first year of no owner contact, in order to prevent
      abandonment. If the notice is returned as undeliverable (RPO), then you are not required
      to mail again.
    Scan or file a hard copy of the mailed letters to provide the best evidence of performing
      due diligence in case of an audit.
    Scan or file the response from the appropriate owner.
    Designate property with bad addresses as “RPO” when filing the report.
                                       Sample Due Diligence Letter
                          Print on Business Letterhead that Includes Full Address


(Owner Name)
(Last Known Address)
(City, State, Zip)                                Re: (Account Info. or Check # or Property

Our records indicate that no owner-initiated activity has occurred in the above referenced property since
(date). Currently this account has a balance of (amount). OR Our records indicate that the above noted
official check has not been presented for payment. OR Other specific language regarding the type of

This property is classified as unclaimed property because there has been no owner initiated activity for at
least (number of years) years. The West Virginia Uniform Unclaimed Property Act requires that we turn
over any property that has been inactive for this time period. Your property must be reported shortly to
the West Virginia State Treasurer and will be delivered to the custody of that agency at that time. Once
the property is turned over, the Treasurer becomes the custodian for the property. You do not lose your
rights to the property and may file a claim with the Treasurer to obtain it.

However, you may claim the property (OR re-establish this account) by signing this letter below and
returning it to us.


(Phone Number)

( )      (Language allowing customer to re-establish account) I am aware of this property. However,
         please change the address to the following:

( )      I wish to close this account. Please send a check for the balance to the address below:

( )      I wish to claim this property. Please call me at the following number to coordinate its transfer.
         Phone #: _____________________
Signature________________________________   Date   ___________________

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