Post by Logan on Jun 13, 2016 21:30:08 GMT -6
Texas AG Ken Paxton unveils 21-state lawsuit accusing Delaware of swiping $400M in unclaimed checks
WASHINGTON — Attorney General Ken Paxton today accused the state of Delaware of swiping up to $400 million in unclaimed checks that rightfully belong to Texas and the 48 other states.
Texas’ share, he said, would be about $10 million.
For the last four or five years, Paxton said, announcing a lawsuit against Delaware that was filed directly at the U.S. Supreme Court, Delaware has been requiring financial institutions incorporated under its laws — in particular MoneyGram – to turn over unclaimed funds only to Delaware.
But under a 1974 federal law, Paxton asserted, such funds belong to the state in which a transaction originated. MoneyGram lets people pay a fee to purchase a check they can send to someone else.
“The state of Delaware elected to begin playing by a different set of rules,” Paxton said, calling the practice both illegal and unfair. “Delaware has our money.”
Read more: trailblazersblog.dallasnews.com/2016/06/texas-ag-ken-paxton-unveils-21-state-lawsuit-accusing-delaware-of-swiping-400m-in-unclaimed-checks.html
WASHINGTON — Attorney General Ken Paxton today accused the state of Delaware of swiping up to $400 million in unclaimed checks that rightfully belong to Texas and the 48 other states.
Texas’ share, he said, would be about $10 million.
For the last four or five years, Paxton said, announcing a lawsuit against Delaware that was filed directly at the U.S. Supreme Court, Delaware has been requiring financial institutions incorporated under its laws — in particular MoneyGram – to turn over unclaimed funds only to Delaware.
But under a 1974 federal law, Paxton asserted, such funds belong to the state in which a transaction originated. MoneyGram lets people pay a fee to purchase a check they can send to someone else.
“The state of Delaware elected to begin playing by a different set of rules,” Paxton said, calling the practice both illegal and unfair. “Delaware has our money.”
Read more: trailblazersblog.dallasnews.com/2016/06/texas-ag-ken-paxton-unveils-21-state-lawsuit-accusing-delaware-of-swiping-400m-in-unclaimed-checks.html