Minimize Escheatment: a $900m Institution Case Study2015-10-20T11:02:24+00:00

Project Description

MINIMIZE ESCHEATMENT: REACTIVATING DORMANT ACCOUNTS

Objective:

To reduce losses from dormant accounts being turned over to the state.

Analysis:

This $900 million credit union was losing funds each year due to deposit accounts going dormant and being escheated to the state as required by law. This institution does business in two states, and each state has its own time frame for escheat – inactivity for 30 months in one state and 48 months in the other.

Action:

MARQUIS set up a system for notifying account owners of dormancy, timed according to their state’s requirements. Trigger letters were mailed for inactive checking and savings accounts, suggesting simple account activity in order to prevent escheatment.

Results:

Over the course of 27 months, the institution has saved nearly $1.6 million from being escheated to the state. With a nominal marketing spend, and an average response rate of 33.35%, the program saved $140 from escheatment for every $1 spent. The low-cost deposit accounts that have been reactivated are now positioned to stay with the institution and help fund loan efforts.

SOLUTIONS USED

MARQUIS OnTrax | MARQUIS Creative